Tyson shares jump after company ups outlook, announces layoffs
Shares of Tyson Foods Inc. (TSN) jumped more than 7% late Thursday after the company raised its outlook and announced a restructuring that includes layoffs. Thanks to "much better than expected" profit in the beef segment, the company upped its forecast for fiscal 2017's adjusted per-share earnings to between $5.20 a share and $5.30 a share, from $4.95 a share to $5.05 a share. Guidance for fiscal 2018 was set for adjusted earnings of $5.70 a share to $5.85 a share. Tyson plans to reduce its headcount by 450 jobs across several areas and levels, with most the eliminated positions coming from corporate offices, the company said in a statement. In its fiscal fourth-quarter earnings report on Nov. 13, Tyson plans to report restructuring and other charges of $140 million to $150 million, it said. The restructuring aims to save $200 million, $400 million and $600 million over fiscal years 2018, 2019 and 2020, the company said. Shares of Tyson ended the regular trading day down 1.1%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
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