(Vegan AF) -- Shares of the meat-processing giant Tyson Foods, tumbled over 8% to $51.90 after disclosing on Monday they are closing four more U.S. chicken plants in its latest effort to cut costs due to rising inflation and softening sales. The meat giant has grappled with declining profits and struggled to improve results in its chicken business. Tyson's fiscal third-quarter sales trailed even the lowest of analyst estimates.
Net losses attributable to Tyson were $417 million, or $1.18 per share, in the reported quarter, compared with a net income of $750 million, or $2.07 per share, a year earlier. On an adjusted basis, the company earned 15 cents per share in the quarter ended July 1.
"Chicken, beef and pork all face different types of macro and market challenges," Chief Financial Officer John R. Tyson said in an interview. "That's persisted for a little while."
Production from the facilities, which are based in Arkansas, Indiana and Missouri, will be moved to other locations as the meat supplier seeks to boost capacity utilization and reduce costs, according to Chief Financial Officer John R. Tyson. Tyson declined to provide details on the number of jobs impacted by the closures.
“It’s a difficult decision,” the executive said in an interview. “But for the long-term future of Tyson, this is the right choice to make.” He declined to say whether more plant closures are possible. Tyson in May closed two other chicken plants with almost 1,700 employees.
In April, Tyson said it would eliminate about 10% of corporate jobs and 15% of senior leadership roles. The company also laid off corporate employees in Chicago and South Dakota who declined to relocate to Tyson's headquarters in Arkansas.
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