SPRINGDALE, Ark., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN), one of the world's largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, reported the following results: (in millions, except per share data) Third Quarter   Nine Months Ended     2024     2023       2024     2023   Sales $ 13,353   $ 13,140     $ 39,744   $ 39,533                   Operating Income (Loss) $ 341   $ (350 )   $ 884   $ 68   Adjusted1Operating Income (non-GAAP) $ 491   $ 179     $ 1,308   $ 697                   Net Income (Loss) Per Share Attributable to Tyson $ 0.54   $ (1.18 )   $ 1.25   $ (0.56 ) Adjusted1Net Income (Loss) Per Share Attributable to Tyson (non-GAAP) $ 0.87   $ 0.15     $ 2.18   $ 0.97   1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this table and throughout this earnings release, adjusted operating income (loss) and adjusted net income (loss) per share attributable to Tyson (Adjusted EPS) are non-GAAP financial measures. Refer to the end of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP measures. First Nine Months Highlights Sales of $39,744 million, up 0.5% from prior year GAAP operating income of $884 million, up $816 million from prior year Adjusted operating income of $1,308 million, up 88% from prior year GAAP EPS of $1.25, up $1.81 from prior year Adjusted EPS of $2.18, up 125% from prior year Total Company GAAP operating margin of 2.2% Total Company adjusted operating margin (non-GAAP) of 3.3% Cash provided by operating activities of $1,973 million, up 38% from prior year Free cash flow (non-GAAP) of $1,089 million, up $1,224 million from prior year Third Quarter Highlights Sales of $13,353 million, up 1.6% from prior year GAAP operating income of $341 million, up $691 million from prior year Adjusted operating income of $491 million, up 174% from prior year GAAP EPS of $0.54, up $1.72 from prior year Adjusted EPS of $0.87, up 480% from prior year Total Company GAAP operating margin of 2.6% Total Company adjusted operating margin (non-GAAP) of 3.7% Liquidity of approximately $4.8 billion as of June 29, 2024 "Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business," stated Donnie King, President & CEO of Tyson Foods. "In Q3, we delivered the highest adjusted operating income in the last seven quarters while also generating strong free cash flow. Looking ahead, we will continue to strive to be best-in-class operators, drive efficiencies, value-up our portfolio, win with customers and consumers, and be disciplined in our capital deployment." SEGMENT RESULTS (in millions) Sales (for the third quarter and nine months ended June 29, 2024, and July 1, 2023)   Third Quarter Nine Months Ended       Volume Avg. Price     Volume Avg. Price     2024     2023   Change Change2   2024     2023   Change Change2 Beef $ 5,241   $ 4,956   4.4 % 1.4 % $ 15,218   $ 14,296   0.9 % 5.5 % Pork   1,462     1,324   1.2 % 12.6 %   4,465     4,274   4.0 % 1.5 % Chicken   4,076     4,212   (0.4) % (3.7) %   12,174     12,905   (2.7) % (3.2) % Prepared Foods   2,432     2,383   2.0 % 0.1 %   7,379     7,343   1.7 % (1.2) % International/Other   582     633   6.5 % (14.6) %   1,744     1,879   3.9 % (11.1) % Intersegment Sales   (440 )   (368 ) n/a   n/a     (1,236 )   (1,164 ) n/a   n/a   Total $ 13,353   $ 13,140   1.1 % 0.6 % $ 39,744   $ 39,533   (0.1) % 0.7 % Operating Income (Loss) (for the third quarter and nine months ended June 29, 2024, and July 1, 2023)   Third Quarter Nine Months Ended       Operating Margin     Operating Margin     2024     2023   2024   2023     2024     2023   2024   2023   Beef $ (69 ) $ 66   (1.3) % 1.3 % $ (310 ) $ 232   (2.0) % 1.6 % Pork   (62 )   (74 ) (4.2) % (5.6) %   (24 )   (128 ) (0.5) % (3.0) % Chicken   244     (314 ) 6.0 % (7.5) %   579     (503 ) 4.8 % (3.9) % Prepared Foods   203     206   8.3 % 8.6 %   676     705   9.2 % 9.6 % International/Other   25     (234 ) n/a   n/a     (37 )   (238 ) n/a   n/a   Total $ 341   $ (350 ) 2.6 % (2.7) % $ 884   $ 68   2.2 % 0.2 % ADJUSTED SEGMENT RESULTS (in millions) Adjusted Operating Income (Loss) (Non-GAAP)1 (for the third quarter and nine months ended June 29, 2024, and July 1, 2023)   Third Quarter Nine Months Ended       Adjusted Operating Margin (Non-GAAP)     Adjusted Operating Margin (Non-GAAP)     2024     2023   20242   20232     2024     2023   20242   20232   Beef $ (69 ) $ 79   (1.3) % 1.6 % $ (220 ) $ 216   (1.4) % 1.5 % Pork   22     (70 ) 1.5 % (5.3) %   123     (120 ) 2.7 % (2.8) % Chicken   307     (63 ) 7.5 % (1.5) %   659     (152 ) 5.4 % (1.2) % Prepared Foods   203     220   8.3 % 9.2 %   700     738   9.5 % 10.1 % International/Other   28     13   n/a   n/a     46     15   n/a   n/a   Total $ 491   $ 179   3.7 % 1.4 % $ 1,308   $ 697   3.3 % 1.8 % 2 Average Price Change and Adjusted Operating Margin (Non-GAAP) exclude $38 million in the Chicken segment and Total Company for the three and nine months ended July 1, 2023 and $45 million in the Pork segment and Total Company for the three and nine months ended June 29, 2024 of legal contingency accruals recognized as reductions to Sales. OUTLOOKFor fiscal 2024, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2023 levels. The following is a summary of the updated outlook for each of our segments, as well as an outlook for revenue, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2024. Certain of the outlook numbers include adjusted operating income (loss) (a non-GAAP metric) for each segment. The Company is not able to reconcile its full-year fiscal 2024 projected adjusted results to its fiscal 2024 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating income (loss) should not be considered a substitute for operating income (loss) or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company's GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. BeefUSDA projects domestic production will decrease approximately 2% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating loss between ($400) million and ($300) million in fiscal 2024. PorkUSDA projects domestic production will increase approximately 3% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $100 million to $200 million in fiscal 2024. ChickenUSDA projects chicken production will be flat in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $850 million to $950 million for fiscal 2024. Prepared FoodsWe anticipate adjusted operating income of $850 million to $950 million in fiscal 2024. International/OtherWe anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis. Total CompanyWe anticipate total company adjusted operating income of $1.6 billion to $1.8 billion for fiscal 2024. RevenueWe expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023. Capital ExpendituresWe expect capital expenditures between $1.2 billion and $1.3 billion for fiscal 2024. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. This includes completion of capacity expansion projects as well as new equipment, automation technology and processes for product innovation. Net Interest ExpenseWe expect net interest expense to approximate $395 million for fiscal 2024. LiquidityWe expect total liquidity, which was $4.8 billion as of June 29, 2024, to remain above our minimum liquidity target of $1.0 billion. We anticipate using existing liquidity to retire the $1.25 billion senior notes due August 2024. Tax RateWe currently expect our adjusted effective tax rate to be 23-24% for fiscal 2024. TYSON FOODS, INC.CONSOLIDATED CONDENSED STATEMENTS OF INCOME(In millions, except per share data)(Unaudited)   Three Months Ended   Nine Months Ended   June 29, 2024   July 1, 2023   June 29, 2024   July 1, 2023 Sales $ 13,353     $ 13,140     $ 39,744     $ 39,533   Cost of Sales   12,475       12,463       37,177       37,361   Gross Profit   878       677       2,567       2,172                   Selling, General and Administrative   537       579       1,683       1,656   Goodwill Impairment   —       448       —       448   Operating Income (Loss)   341       (350 )     884       68   Other (Income) Expense:               Interest income   (36 )     (6 )     (60 )     (22 ) Interest expense   135       89       351       262   Other, net   (11 )     (7 )     (24 )     (50 ) Total Other (Income) Expense   88       76       267       190   Income (Loss) before Income Taxes   253       (426 )     617       (122 ) Income Tax Expense   57       9       159       84   Net Income (Loss)   196       (435 )     458       (206 ) Less: Net Income (Loss) Attributable to Noncontrolling Interests   5       (18 )     15       (8 ) Net Income (Loss) Attributable to Tyson $ 191     $ (417 )   $ 443     $ (198 )                 Net Income (Loss) Per Share Attributable to Tyson:               Class A Basic $ 0.55     $