Tyson Foods, Inc. (NYSE:TSN) Q1 2019 Earnings Conference Call - Final Transcript

Feb 07, 2019 • 09:00 am ET

Previous

Tyson Foods, Inc. (NYSE:TSN) Q1 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
Stewart Glendinning

Synergies will be smaller there because of the size of the business, but we think that's a great opportunity for our Company.

Analyst
Jeremy Scott

Great. And just wondering if you could maybe assess the impact of African swine fever on each component of your business. Obviously there is some puts and takes that you might see if things are to get really bad, maybe just give some color there?

Executive
Noel White

Yeah, sure Jeremy. The African swine fever, I mean, the different analysts have different outlooks, as to how it could potentially impact your business. I think the general consensus would be that -- it's probably a little worse than what's reported. And that would certainly provide upward potential. We do not have built into our forecast effects from African swine fever. But if we do see, particularly the Chinese back in the market, there could be sizable upside benefit to our pork business. But aside from that, with that increase in exports, we consider the domestic disappearance of protein in total. So if there is more import, it's exported, it also helps both our Beef and our Poultry business as well.

Analyst
Jeremy Scott

Okay. I'll pass it on. Thank you.

Operator
Operator

The next question will be from Rob Moskow of Credit Suisse. Please go ahead.

Analyst
Robert Moskow

Hi. Thank you. Had a question about all the international activity that's going on here, in terms of acquisitions, and then Donnie King coming back to the business. It's just in my experience that the Tyson has never done a particularly good job of leveraging its domestic experience to buy and operate international businesses. There is been some false starts along the way. And now you've made two acquisitions in the past 12 months and Donnie is going to be running international.

Can you explain why Donnie wanted to come back to run that business segment? How his expertise carries over from domestic to international markets? And I guess, why the change in strategy, what -- why now in terms of all this international growth?

Executive
Noel White

Yeah, sure. So Rob, first of all, we are extremely happy to have Donnie back with us. He's been a talented performer for us in many different parts of our Company. We are always looking to deepen our bench and that's exactly what Donnie brings, is a much deeper bench. Doug Ramsey, who is running our poultry business, now running our McDonald's business, did a great job and that is a growing segment for us. So we look forward to Doug's contributions in the McDonald's. And then we have Chad Martin, who just recently relocated from our Beef business, did a great job in managing our Beef business, has moved to Poultry.

So we have three extremely strong individuals in running those businesses. On the international side, Rob, you mentioned that we may not have done a great job historically. That's not to say that we cannot do a great job moving forward. In the last quarterly report, I mentioned that 90% of the growth in