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What makes Tyson Foods a new and different company? It’s on its way to eliminating perhaps a billion dollars in costs in three years and giving earning per share (EPS) guidance of $4.20 to $4.30 in 2017.
The catalyst for Tyson’s transformation from a commodity products company to consumer brands protein powerhouse is, of course, its acquisition of Hillshire Brands in 2014. In the world of mergers and acquisitions, investors and analysts are notoriously skeptical of the pre-acquisition rationale until the newly formed company puts up the numbers. Tyson is doing just that – with projected compound annual growth rate (CAGR) in earnings per share greater than 21 percent from fiscal year 2012 to 2016.
Two years into the completion of the merger, Tyson Foods executives are making the rounds with investors, talking about the transformation of the company into a top-tier, multi-protein consumer brands company that is defying earnings growth expectations.
Read the entire article about how Tyson is cutting costs and achieving growth in the August issue of WATT PoultryUSA
Speaking at the BMO Capital Markets Farm to Fork Conference, Tyson Foods CEO Donnie Smith and President of North American Operations Donnie King talked about the transformation of Tyson Foods to more of a consumer brands company and how over $1 billion in costs have been wrung out the business, even as it improved the product mix and added capacity in value-added chicken.