[ad_1]
Lebenthal Global Advisors Chairman Dominick Tavella predicts that the Fed will cut its bond buying program by the end of the year.
Tyson Foods Inc. is struggling to raise prices fast enough to keep up with higher costs, CEO Donnie King said on Monday.
The Springdale, Arkansas-based grocery company increased the average pork price by 39% in the last quarter. Beef and chicken prices jumped 12% and 16%, respectively.
The price increases come as Tyson, like many other companies, grapples with higher raw material costs, global supply chain challenges and a rebound in demand.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSN | TYSON FOODS, INC. | 77.30 | +6.18 | + 8.69% |
“We have seen unprecedented acceleration and inflation,” King said during the company’s third quarter earnings call. “Inflation is up around 14% during our 3Q [third quarter] and 9% since the beginning of the year. “
Pricing pressures have affected all segments of Tyson’s business.
THE PRICES OF CAR PARTS ON THE RISE
Tyson plans to raise retail prices on September 5 after already raising prices for restaurant customers.
While the cost of grains and cost of goods sold are expected to peak in the fourth quarter of this year, the company cannot rule out further price increases, according to King.
“We will continue to take prices to match the nature of the costs incumbent upon us,” he said.
Tyson said its third-quarter profit rose 42% from a year ago to $ 749 million, or adjusted $ 2.70 per share. Wall Street analysts polled by Refinitiv expected adjusted earnings of $ 1.62 per share.
Turnover, meanwhile, jumped 25% to $ 12.48 billion, ahead of the $ 11.49 billion expected by analysts. Volumes increased by 10%.
Higher prices for customers accounted for over $ 1 billion in improved sales so far this year and an improvement of over $ 300 million in the third quarter alone.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Tyson has increased its sales forecast for the current fiscal year due to strong demand for its beef products. The company expects sales for fiscal 2021 to be between $ 46 billion and $ 47 billion, up from $ 44 billion to $ 46 billion previously.
Tyson shares are up 10% this year through Friday compared to the S&P 500’s 18% gain.
[ad_2]
Source link