Springdale / AR. (tsn) Tyson Foods Inc. reported its financial results for the first quarter 2016, that ended on 02 January. Highlights:
- All segments’ operating margins in or above normalized ranges
- Record operating income up 38 percent to 776 million USD compared to Q1/2015 adjusted results
- Record total company operating margin of 8.5 percent
- Record Chicken segment operating margin at 13.6 percent
- Record Prepared Foods segment operating margin at 10.9 percent
- Pork segment operating margin at 13.0 percent
- Record cash flows from operations of 1.1 billion USD
- Captured 121 million USD in total synergies; 61 million USD incremental synergies over Q1/2015
- Repurchased 6.4 million shares for 300 million USD, excluding shares repurchased to offset dilution from our equity compensation plan
- On February 04, 2016, our Board of Directors approved an increase of 50 million shares authorized for repurchase under our share repurchase program
«Fiscal 2016 is off to a very strong start in what we expect to be another record year», said Donnie Smith, president and chief executive officer of Tyson Foods. «Solid execution across the entire team resulted in record earnings, record operating income, record margins and record cash flows. We captured 121 million USD in total synergies for the quarter, with 61 million USD incremental to fiscal first quarter 2015».
«Our on-going efforts to invest in and grow our Core 9 product lines are paying off as sales volume for the most recent four week period was up 4 percent. The Core 9 product lines represent our strongest brands, greatest pricing power and best category growth opportunities and are major contributors to volume and profitability in the retail channel», Smith said.
«Record cash flows of 1.1 billion USD allowed for 300 million USD of share repurchases in the quarter», Smith said. «We have repurchased 550 million USD of our shares in the past two quarters, plus an additional 200 million USD to date in the second quarter of fiscal 2016. Given the pace of our stock buy backs, our board of directors increased our repurchase authorization by 50 million shares».
«Due to our strong results in the first quarter and our positive outlook on the rest of the year, we are raising our fiscal 2016 earnings guidance to 3.85 USD to 3.95 USD per share. We have a consumer-relevant portfolio packed with advantaged brands in advantaged categories, we have a superior supply chain, and we have a high-performing team focused on execution. I am really excited about what is ahead».
