Tyson Misses Numbers, Will Change CEOs
CEO Donnie Smith will step down at the end of the year and be replaced by company president Tom Hayes, who came on board in 2014 when Tyson acquired pork producer Smithfield Farms. Hayes had been Smithfield’s chief supply chain officer.
Tyson’s sales were down 12.8 percent, to $9.16 billion, in the quarter ending Oct. 1. It was the fourth straight quarter of decline, although net income was up 51.6 percent, to $391 million. Much of the increase was attributed to a drop in the cost of cattle feed.
Tyson executives say they will continue the company’s strategy of expanding its offering of value-added products like marinated and pre-seasoned meats, which have a higher potential profit margin than commodity raw meat and poultry.