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(Bloomberg) — Tyson Foods Inc. said it’s working to weather Donald Trump’s trade war as tariffs threaten to curb its pork exports to Mexico.
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“We’ve been preparing for this,” Chief Executive Officer Donnie King said during a conference call with analysts, adding the company will find alternative export destinations, if necessary. “We’ll leverage our global expertise to identify the best markets for our products.”
Mexico, the largest importer of US pork, readied counter-tariffs against the US after Trump promised 25% levies on products from the Latin American nation. The move has been delayed for one month, President Claudia Sheinbaum said on Monday.
Tyson has raised its 2025 profit forecast even in the face of heightened trade risks after a rebound in its chicken business fueled earnings that beat estimates in the fiscal first quarter.
Shares of the Springdale, Arkansas-based company jumped as much as 3.8% in New York.
Earnings excluding some items were $1.14 a share in the three months ended December, 65% higher than a year earlier and above the 91-cent average of analyst estimates compiled by Bloomberg, the meat producer said in a Monday statement. That’s the best quarterly performance in more than two years.
Tyson raised its outlook for 2025 adjusted operating income by $100 million to a range between $1.9 billion and $2.3 billion. The increase already takes into consideration a scenario where exports to Mexico and Canada may face restrictions, according to King.
The first-quarter result underscores a recovery in the US chicken industry, with producers benefiting from lower prices for corn and soybeans, which are used to feed birds, and stronger consumer demand. Adjusted operating profits for Tyson’s poultry business almost doubled to $368 million in the first fiscal quarter, also exceeding analyst estimates.
Tyson reported a $32 million loss in its beef business, which has struggled with a shortage of cattle in the US and soaring costs for slaughter-weight animals.
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