Tyson Foods Names New CEO and Warns on Profit
Tyson Foods Inc. said Chief Executive Donnie Smith would leave his role by the end of the year, to be replaced at the helm by President Tom Hayes, as Tyson gave a downbeat forecast for earnings in the year ahead.
The largest U.S. meat company by sales also posted disappointing quarterly profit and revenue, and shares fell 8% to $61.94 in premarket trading.
Mr. Hayes, who will keep the role of president and take a seat on the company's board effective immediately, previously oversaw all of Tyson's North American sales as chief commercial officer. Chairman John Tyson said the board's decision to name Mr. Hayes as CEO was based on his record and "how his skills align with the company's strategic direction."
Mr. Smith became CEO in 2009 and broadened the company's range of products and investments beyond its core business in meat processing. The company said Mr. Smith will be available to consult with the company for a three-year period.
For its year that began in October, the company said it expects earnings in a range of $4.70 to $4.85, below the $4.98 projected by analysts polled by Thomson Reuters.
For its fourth quarter, which ended in October, Tyson posted a profit of $391 million, or $1.03 a share, up from $258 million, or 63 cents a share, a year earlier. Excluding certain items, per-share earnings were 96 cents a share, up from 83 cents. Analysts surveyed by Thomson Reuters forecast per-share earnings of $1.17.
Revenue slid 13% to $9.16 billion. Analysts anticipated $9.38 billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com