Tyson Foods, which specializes in chicken products, clipped its fiscal 2018 earnings target. The company now expects earnings on an adjusted basis to be around $5.70-6.00 a share compared to the prior estimate of $6.55-6.70.
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The Springdale, Arkansas-based company cut down its guidance due to uncertainty in trade policies, increased tariffs that could negatively impact domestic and export prices — mainly chicken and pork, and increased volatility in the commodity markets.
“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. We will continue to watch these conditions carefully,” said Tom Hayes, CEO.
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Due to the reduced demand, the unsold meat piles up in the US. According to the Wall Street Journal, nearly 2.5 billion-pound surplus of meat has been piled up. Shares of Tyson Foods continued to trade in the negative territory and hit a new yearly low of $56.79 today.