Donnie King

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Tyson Foods opens bacon processing plant in Kentucky

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods opened a new processing plant in Bowling Green, Ky., this week. The 400,000-square-foot plant cost $355 million to build and outfit and will employ around 450 workers.

The facility is expected to produce two million pounds of bacon weekly for its Wright and Jimmy Dean retail brands and for food service customers.

“Our innovative new plant in Bowling Green reflects a major investment that we are proud to make in south-central Kentucky,” said Tyson Foods CEO Donnie King. “This enables us to focus on the health and safety of our team members while also delivering best-in-class service for our customers.”

Tyson Foods opens bacon processing plant in Kentucky

photo courtesy Tyson Foods

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Tyson Foods reports fiscal year loss of $648 million

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods on Monday (Nov. 13) reported an income loss in fiscal year 2023 of $648 million, well below the $3.238 billion of net income in fiscal 2022. Annual revenue was also lower at $52.881 billion, dipping 0.75% from the prior year.

For 2024, Tyson Foods said it expects revenue to remain flat in the $52.8 billion range, well below the $57.37 billion analysts had projected. Company executives said they expect better results in chicken and prepared foods with comparable results in pork and continued challenges in the beef segment during fiscal 2024.

“While economic headwinds persist, we are moving in the right direction and managing what we can control,” Tyson Foods President and CEO Donnie King said in prepared remarks. “The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”

Tyson Foods reports fiscal year loss of $648 million

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Tyson Foods in recent years sees rapid turnover at top job

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by Kim Souza (ksouza@talkbusiness.net)

It’s proven to be a tough job to hold as of late. The Tyson Foods chief executive officer role has turned over four times in seven years since Donnie Smith stepped down. Tyson Foods CEO Donnie King, CEO since June 2021, is the fourth in the job since Smith left in 2016.

Smith held the CEO position through a growth period for Tyson Foods from 2009 through 2016. He oversaw the acquisition of Hillshire Farms in 2014 and is credited with achieving four straight years of record net income and multiplying stock value six times in seven years.

At 57, Smith stepped down as CEO with a hefty retirement package valued at $24 million, which included a three-year consulting agreement that paid him a minimum of $5,800 per hour worked. His exit package also included $3.53 million in severance and restricted shares and stock options valued at $5.5 million. Additional shares, valued at $6.69 million, were to vest if his successor Tom Hayes achieved certain performance goals. Smith also had a minimum of $8.16 million in retirement benefits. Smith logged 36 years with Tyson Foods, joining the company after college graduation.

https://talkbusiness.net/2023/08/tyson-foods-in-recent-years-sees-rapid-turnover-at-top-job/

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Around 2,800 jobs to be cut as Tyson Foods closes chicken plants

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods announced Monday (Aug. 7) plans to close four chicken processing plants in North Little Rock, Noel and Dexter, Mo., and Corydon, Ind., over the next three quarters. The news followed a significant financial loss in the third fiscal quarter.

While Tyson did not confirm the total number of jobs eliminated with the closures, estimates from local communities total 2,800 plant positions. The majority of those will be in Noel, with an estimated 1,500 jobs and full poultry production complex closing its doors in October. North Little Rock’s further processing plant will lose an estimated 200 jobs in October. The plants in Dexter, Mo., and Corydon, Ind., employ 500 and 600, respectively, according to local community statistics. Those plants are slated to close in early 2024.

Tyson Foods CEO Donnie King said the decision to shutter the plants was “gut-wrenching” but necessary as the older facilities were in need of major capital investments that did not make sense. The North Little Rock plant is 55 years old and was acquired by Tyson Foods in 1969 from Prospect Farms. It is a further-processing plant and not a slaughter facility. The Noel, Mo., complex includes a processing and kill plant, truck shop and service center and is a major employer in McDonald County. The Dexter, Mo., and Corydon, Ind., facilities are also older further-processing plants.

https://talkbusiness.net/2023/08/around-2800-jobs-to-be-cut-as-tyson-foods-closes-chicken-plants/

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Tyson Foods posts ugly $417 million net income loss in third fiscal quarter

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods on Monday (Aug. 7) reported a quarterly net income loss of $417 million, a wide swing from net income of $720 million in the year-ago quarter. The company cited one-time charges of more than $448 million in the chicken and prepared foods segments for most of the loss.

Revenue came in at $13.14 billion, down 3% from a year ago and 2.8% shy of analysts’ estimates for the quarter ending July 1. On an adjusted basis, earnings per share totaled 15 cents, down 92% from the year-ago period. Analysts predicted adjusted earnings per share of 26 cents.

Tyson Foods CEO Donnie King said market dynamics remain challenging for the company and the industry. He assured analysts that Tyson was turning things around in its chicken segment and is setting itself up to be a stronger, more sustainable and efficiently run company. King announced closures of chicken plants in North Little Rock, Noel and Dexter, Mo., and Corydon, Ind. He said the two previous closures in Van Buren, Ark., and Glen Falls, Va., helped increase efficiency in the chicken segment.

https://talkbusiness.net/2023/08/tyson-foods-posts-ugly-417-million-net-income-loss-in-third-fiscal-quarter/

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Tyson Foods posts $97 million quarterly loss, reduces earnings guidance

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods reported a second fiscal quarter net income loss of $97 million on Monday (May 8), a wide swing from net income of $829 million in the same quarter last year. Revenue was $13.133 billion, up from $13.117 billion a year ago, but $600 million less than the consensus estimate.

After one-time adjustments for restructuring and plant closures, the net loss per share was 4 cents, down from $2.28 earned a year ago. Tyson fell way short of the 80 cents per share consensus estimate. The earnings miss in the quarter ending March 31 and weaker guidance for fiscal 2023 by Tyson Foods sent the stock tumbling more than 15% in heavy trading Monday morning after the earnings report was posted.

“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” said Donnie King, president and CEO of Tyson Foods. “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.”

https://talkbusiness.net/2023/05/tyson-foods-posts-97-million-quarterly-loss-reduces-earnings-guidance/

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Tyson Foods makes another leadership change

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by Kim Souza (ksouza@talkbusiness.net)

David Bray, who has managed Tyson Foods’ poultry business since July 2021, is being replaced by Wes Morris. Bray spent 14 years at Tyson Foods, most of them working in the company’s retail business in sales roles.

Tyson said Morris assumed the role of president for the chicken business effective Jan. 27. He has more than 35 years of experience working in poultry and consumer sales. Morris first joined Tyson Foods in 1999 and held several leadership positions, including group vice president of consumer products, and last working as the president of prepared foods operations for four years before retiring in 2017.

“Wes is a recognized leader who will help position us for continued success and the future growth of our chicken segment,” said Tyson Foods CEO Donnie King. “We’re confident his experience will help us continue to strengthen our chicken operations and meet growing consumer demand for Tyson® brand products.”

https://talkbusiness.net/2023/01/tyson-foods-makes-another-leadership-change/

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Dean Banks Resigns as Tyson Foods President and CEO; Donnie King Named Successor

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Springdale-based Tyson Foods said Wednesday (June 2) that president and CEO Dean Banks has resigned from the company and board for personal reasons. Donnie King, the company’s chief operating officer, has been named as his successor, effective immediately.

“The board and I know that Donnie has a deep understanding of our business, values and culture and the solid leadership skills needed to continue to implement our strategy and deliver strong results,” John H. Tyson, chairman of the board, said in a company news release. “We want to express our appreciation to Dean for his contributions as a board member and executive.”

Banks joined the company as president in 2017 and added the CEO title in October 2020.

https://talkbusiness.net/2021/06/dean-banks-resigns-as-tyson-foods-president-and-ceo-donnie-king-named-successor/

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