Tyson Foods Inc. expects a big boost from the addition of Hillshire Brands Co.
The company told investors Thursday it expects earnings per share to increase 10 percent in the 2015 fiscal year. Tyson and Chicago-based Hillshare Brands completed its $8.5 billion combination last week, bringing together such brands as Tyson, Jimmy Dean, Hillshire Farm, Sara Lee and Ball Park.
“We’re moving forward quickly with the integration and finding synergies, and we feel good about our ability to capture $225 million in synergies in the first year and $500 million by year three,” Tyson president and CEO Donnie Smith told investors at the annual Barclays Back-to-School Consumer Conference. “The more we get into it, the better we feel.”
Dennis Leatherby, Tyson’s executive vice president and chief financial officer, confirmed Tyson’s earnings guidance of at least $2.78 per share for the fiscal year ending Sept. 27, excluding costs or earnings associated with the Hillshire merger.
He said the company expects Hillshire to add to earnings in fiscal 2015 and substantially increase earnings thereafter. Leatherby said he expects at least 10 percent earnings per share growth in fiscal 2015.
Tyson, based in Springdale, Arkansas, is one of the world’s largest producers of chicken, beef, pork and prepared foods. It employs about 124,000 people at more than 400 facilities and offices in the United States and around the world.