Shares in Tyson Foods, the largest meat producer in the US, were on track for a historic one-day drop after the company cut its revenue outlook for 2023.
The company now expects sales of $53bn to $54bn in 2023, down from its forecast three months ago of $55bn to $57bn. It also expects capital expenditure of about $2.3bn this year, a reduction of $200mn from its previous estimate.
The outlook cuts accompanied the reporting of a “challenging” second quarter in which it swung to a loss and sales fell short of estimates.
Sales were flat at about $13.1bn in the three months ended April 1 and missed Wall Street forecasts by almost half a billion dollars. Average prices for its meat and foods in the quarter down 3.2 per cent overall, although sales volumes rose by about as much. The company swung to a reported loss of $97mn in the second quarter.
Tyson shares were down more than 17 per cent in late market trading on Monday afternoon, on track for one of its five largest one-day drops on record.
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