Tyson Foods Q4 net income drops by nearly half
Sales for Tyson Foods hit record highs in fourth quarter and fiscal year 2014
Tyson Foods net income for the fourth quarter of 2014 was nearly cut in half when compared to the fourth quarter of fiscal year 2013, while yearly net incomes increased from those recorded one year ago.
Following the August 28 purchase of Hillshire Brands, Tyson Foods recorded fourth quarter net income of $137 million, down from the $261 million from the same period of 2013. On an annual basis, Tyson’s net income for 2014 was $864 million, up from the $778 million reported at the end of fiscal year 2013.
Sales for Tyson Foods hit a record high $10.1 billion in the fourth quarter, a 14 percent year-over-year improvement, while sales during fiscal year 2014 also hit a record of $37.6 billion, an increase of 9 percent.
Sales volumes for Tyson’s Prepared Foods segment, which now includes Hillshire Brands, were up, as were sales for its Chicken and International segments. Sales volumes for Tyson Foods’ Beef and Pork segments were down.
Tyson Foods CEO Donnie Smith was pleased with the overall results of the company in 2014, and looking forward, he anticipates great things for 2015 and beyond.
"This is an exciting time as we integrate Hillshire Brands and Tyson Foods," Smith said, "and I believe that when we look back on this merger years from now, we'll see it as a watershed event. We're setting higher expectations and anticipating more growth and increased profitability, specifically in the Chicken and Prepared Foods segments. In the long-term, our Chicken segment should generate a 7-9 percent return on sales, although we expect fiscal 2015 to be particularly strong with a return of more than 10 percent.
"Although it's still early in the process, I'm pleased with the progress we've made with the integration. We've identified the synergy targets, and now we're working to bring those dollars to the bottom line. We're very confident we'll meet the expected synergy amounts of $225 million or more for fiscal '15 and more than $500 million by the end of year three, and when we get there in fiscal 2017, we expect the Prepared Foods segment to earn a 10-12 percent return on sales.”