Tyson Foods executives told investors at the Morgan Stanley Global Consumer and Retail Conference on November 19 that after a record year in fiscal year 2014, the company expects fiscal year 2015 to set new records for sales and earnings.
"We expect 2015 to be another great year as we continue to build on the momentum we've generated," said Dennis Leatherby, Tyson's executive vice president and chief financial officer. "We expect to capture at least $225 million in synergies from the integration of Hillshire and improvements in our Prepared Foods segment. The sale of our Latin American businesses is expected to generate over $500 million in proceeds, which we'll use to de-leverage. Revenues should be approximately $42 billion. We should generate in excess of $1 billion in free cash flow, and we expect adjusted earnings in the range of $3.30 to $3.40 per share, which is more than 12 percent growth over fiscal 2014."
Tyson's accounting cycle will result in a 53-week year in fiscal 2015. For comparison purposes, projections have been adjusted to a 52-week year.
Donnie Smith, Tyson's president and chief executive officer, added: "Tyson Foods has shown good growth over the past five years, but I think right now is the beginning of a new growth phase. We have the right brands and the right products in the right places for today's consumers. We see great potential this year, next year and on into the future. We're integrating Hillshire Brands, capturing synergies and producing steadily increasing earnings. It's a very exciting time to be one of the leading food companies in the world."
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