Sept 3 (Reuters) - Tyson Foods cut its profit forecast for a second time within a month and also lowered its annual sales target, blaming increased pressure in its beef segment due to expected weak cattle prices.
Last week, U.S. President Donald Trump signed a proclamation to temporarily increase imports of lean beef trimmings at a lower tariff rate to tackle higher beef prices that touched a record high this year due to a severe shortage in cattle supply in the face of drought and wildfires.
In August,
Tyson Foods also said it would close or sell three of its beef plant and packaging operation sites as meatpackers in the U.S. struggled with the shortage of cattle.
The company's forecast cut was driven by "significant margin compression amid volatile cattle prices", as well as the expected impact of lower cattle prices on the value of live cattle inventories, it said.
Tyson Foods' shares were down about 8% in early trading on Thursday.
The company now expects fiscal 2026 adjusted operating income of $1.85 billion to $2.05 billion, compared with $2.1 billion to $2.3 billion it forecast on August 3.
It also expects fiscal 2026 revenue growth of 1.5% to 2.0%, compared with 2.5% to 3.5% expected last month.
"The beef pressures that have intensified this quarter reflect industry-wide cattle-cycle dynamics that required decisive action," said Donnie King, chief executive officer of Tyson Foods.
(Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru; Editing by Maju Samuel)
