Tyson Foods Inc. reports that beef sales are suffering, causing a decrease in its earnings projection.
Tyson reports that its beef segment saw an 8 percent decrease in the third quarter, driving up the price of cattle and causing issues for the export market, reports Myles Udland for Business Insider.
This is bad news for Tyson, given that beef is the largest revenue generator for the company.
"Our beef business suffered from export market disruptions that had an $84 million impact on third quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realize expected revenue levels in this spread business,” Tyson President and CEO Donnie Smith said in a statement. "While we are pleased with the performance of our business overall, unless beef market conditions improve rapidly, we will not achieve our previous guidance of $3.30-$3.40 adjusted earnings per share. As a result, we are modifying fiscal 2015 guidance to $3.10-$3.20 adjusted EPS.”