Tyson lowers full-year guidance
September 05, 2007
by FoodBusinessNews.net Staff
SPRINGDALE, ARK. — As a result of a challenging fourth quarter, Tyson Foods, Inc. has lowered its 2007 fiscal guidance to 72c to 80c per share. This is down from a previously forecasted range of 82c to 92c per share.
Richard L. Bond, chief executive officer, said the beef business has been affected by higher-than-anticipated live cattle costs and a decline in beef revenues due to disruption in South Korean beef trade. Additionally, live hog prices were high as a result of speculation about Chinese pork imports.
Mr. Bond said the company increased chicken prices earlier in the year and gave up sales volume as a result.
During the year, the company also has rationalized three beef plants to improve capacity utilization, closed two prepared foods plants that didn’t fit the company’s business model, sold two commodity poultry plants and made the decision not to rebuild another poultry plant that was destroyed by fire. The company has cut costs through a cost management initiative started in mid-2006, an effort that is expected to result in an excess of $250 million in fiscal 2007 savings.
"I’m very excited and optimistic about the company’s long-term success because we’ve made a lot of changes in how we run the business, and we’ve reached a lot of milestones," Mr. Bond said.
The company said it believes long-term performance will be boosted with new product initiatives such as the Raised Without Antibiotics chicken and Any’tizers.