Tyson warns of disruptions
Outbreak to affect delivery, consumption of meat, it says
Tyson Foods Inc. warned investors Friday that the spreading coronavirus pandemic could disrupt its operations.
After markets closed Friday, the nation’s largest meat company said in a shareholder filing that disease outbreaks such as covid-19 may disrupt consumption and trade patterns, supply chains, and production processes — “which could materially affect our operations and results of operations.”
More specifically, Tyson is considering a number of outside risk factors. The company told investors it was anticipating protein demand to drop because of quarantines and fewer public gatherings. It’s also anticipating the export, import and delivery of goods nationwide to be disrupted as ports of entry and other channels are closed or working at a lower capacity with limited staff.
Additionally, Tyson is bracing for its own changes. The company’s operations, including independent contract poultry growers that raise animals for slaughter, may become limited in their ability to “procure, deliver or produce our food products” because of quarantine-related transport restrictions and travel bans, Tyson said. Many corporate staff members are also working remotely as a precaution.
In a memo to employees on Friday, Chief Executive Noel White requested that they work from home through March 27, limit their travel and practice social distancing — or avoiding mass gatherings and keeping their distance from others when possible. Walmart, J.B. Hunt and other employers in the state also encouraged employees to work remotely in the coming weeks.
“We will continue to adapt and adjust our approach as needed,” White said. The week prior Tyson suspended all international travel from the U.S., curbed employees from attending large workrelated conferences and encouraged sick employees to stay home.
Meanwhile, food supply replenishment is of public concern. President Donald Trump on Sunday said he recently spoke with executives from “phenomenal companies” such as Walmart and Tyson and was encouraged that “they’re going to work 24 hours around the clock keeping their stores stocked.”
“They’re buying more than they buy at Christmas,” he said. “Relax. We’re doing great. It all will pass.”
The next day Trump said the coronavirus outbreak could last into the summer, perhaps longer.
Tyson’s shares fell more than 14%, or $7.46 to close Monday at $45.05 on the New York Stock Exchange. They have traded as high as $94.24 in the past year and were valued at $70.54 in early March.