Tyson Foods, Inc. (NYSE:TSN) Q1 2017 Earnings Conference Call - Final Transcript

Feb 06, 2017 • 09:00 am ET


Tyson Foods, Inc. (NYSE:TSN) Q1 2017 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Tyson Foods first quarter earnings conference call. [Operator Instructions]

I now would like to turn the conference over to to Jon Kathol, Vice President of Investor Relations. Please go ahead. Sir.

Jon Kathol

Good morning and welcome to the Tyson Foods Incorporated first quarter earnings conference call of the 2017 fiscal year. On today's call are Tom Hayes, President and Chief Executive Officer, and Dennis Leatherby, Executive Vice President and Chief Financial Officer. Slides accompanying today's prepared remarks are available as a quarterly supplemental report on the Investor Relations section of our website at ir.tyson.com.

Tyson Foods issued an earnings news release this morning which has been filed with the SEC on Form 8-K and also is available on our website at ir.tyson.com. Our remarks today include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements reflect current views with respect to current events, such as Tyson's outlook for future performance on sales, margin, earnings growth and various other aspects of its business. These statements are subject to the risk and uncertainties that could cause actual results to differ materially from our expectations and projections. I encourage you to read the release issued earlier this morning and our filings with the SEC for a discussion of the risks that can affect our business.

I would like to remind everyone that this call is being recorded on Monday February 6, 2017 at 9 AM Eastern Time. A replay of today's call will be available on Tyson's website approximately one hour after the conclusion of this call. This broadcast is the property of Tyson Foods and any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Tyson Foods is strictly prohibited.

I'll now turn the call over to Tom Hayes.

Thomas P. Hayes

Thanks, Jon. Having grown up in New England, I want to start by saying congratulation to the Super Bowl 51 Champion New England Patriots. They set some records last night and we're setting some records ourselves here today. On my first earnings call as President and CEO, I'm thrilled to share our great results that Tyson Foods family delivered in the first quarter of fiscal year in 2017. It's an incredibly exciting time at Tyson as we position ourselves for the next stage of growth and I'm looking forward to leading our team as we seek to improve the value of our company for all of our stakeholders.

Let's talk about our Q1, which is the best quarter in the Company's history with record earnings, operating income and cash flows. Return on sales was in or above the normalized range for each of our segments and total company operating margin was a record 10.7%. In the first quarter, we capitalized on favorable market conditions in our Beef and Pork segments and the cash generated is providing fuel for growth in our value-added Chicken and Prepared Foods segments.

As we outlined in our year-end 2016 call, our