HUTCHINSON, Kan. — Tyson Foods fell far short of fiscal Q2 forecasts early Monday, a week after issuing a warning about the coronavirus hitting the supply chain for meat.
The meat products company still delivered record sales of $10.88 billion in the second quarter compared with $10.44 billion in 2019.
Tyson said it expects cattle supplies to increase by 2% this year. Pork supplies are expected to increase 5% with livestock costs down and export markets more available later this year.
The prepared foods division held steady through the second quarter with sales totaling $2 billion, a drop of a fraction of a percentage point. However, a fall in the demand for such products from restaurants caused operating income to fall by $45 million.
Tyson has been under pressure due to plants closing during the pandemic. Meatpacking plants have seen some of the highest cases of COVID-19. The pandemic has increased fears that shortages of meat products could be coming in the next few weeks. Some stores including Kroger stores have been limiting purchases of meat at their stores.