Tyson Foods tops second-quarter profit estimates on cost control efforts, sales slip

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Tyson Foods tops second-quarter profit estimates on cost control efforts, sales slip
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Tyson’s second-quarter net sales fell 0.5% to $13.07-billion, compared with estimates of $13.16-billion

surpassed Wall Street expectations for second-quarter profit on Monday, as it begins to reap the benefits of shutting some chicken processing plants to reduce costs.

The biggest U.S. meat company by sales has shuttered six U.S. chicken plants since the start of last year, laid off corporate employees and announced plans to close a pork plant, in an attempt to rein in costs. However, it has been grappling with slowing demand over the last few quarters as price-conscious customers cut back on expensive purchases and look for affordable options amid still-high food prices and borrowing costs.

Sales in the chicken segment, which struggled with excess supply during 2023, were down 8.3 per cent in the quarter even though prices fell 2.1 per cent. Volumes dropped by 6.1 per cent.

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