Tyson Foods cuts outlook on tariffs, shares fall

Escalating trade conflicts caused Tyson Foods to lower its full-year guidance on Monday, sending the stock plunging.

The food company cut its full-year guidance to $5.70 to $6 per share, down from prior per share estimates of $6.55 to $6.70.

“The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein,” Tom Hayes, Tyson Foods president and CEO, said in a statement.

The company also said it now expects a reduced benefit from the tax reform package, signed into law last December, of $0.77 per share versus prior estimates of $0.85. Also contributing to the decision to lower guidance for 2018 was rising volatility in the commodity markets, which has increased the domestic supply of proteins, according to the company.

After the announcement, shares of Tyson Foods fell.

Ticker	Security	Last	Change	Change %
TSN	TYSON FOODS INC.	61.99	+1.04	+1.71%

Tyson Foods’ major brands include Hillshire Farm and Jimmy Dean; its main products include beef, chicken and pork. In fiscal 2017, Tyson Foods recorded more than $38 billion in sales, including 38% from beef, 30% from chicken and 11% from pork.

On Monday, the company said trade-related uncertainties and rising tariffs are negatively impacting prices of chicken and pork, both domestically and internationally.

In May, Tyson Foods executives said trade disputes between the U.S. and China hadn’t affected its business.

The company will deliver third-quarter earnings Monday, Aug. 6.