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Tyson Reports Fourth Quarter and Fiscal Year 2009 Results

globenewswire

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Press Release Source: Tyson Foods, Inc. On Monday November 23, 2009, 7:30 am EST



 * 4th quarter 2009 EPS was ($1.22), which included a non-cash
   goodwill impairment charge in our Beef segment of $560 million, or
   $1.50 per share.
 * 4th quarter 2009 EPS excluding the goodwill impairment charge
   was $0.28, as compared to $0.13 last year
 * Excluding the goodwill impairment charge, all operating segments
   were profitable for the quarter:
   * Chicken operating income $32 million, or 1.2% of sales
   * Beef operating income $120 million, or 4.0% of sales
   * Pork operating income $48 million, or 5.5% of sales
   * Prepared Foods operating income $39 million, or 5.3% of sales
 * Operations generated more than $1.0 billion of cash flows in
   fiscal 2009

SPRINGDALE, Ark., Nov. 23, 2009 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN - News), today reported the following results:



 (in millions, except per share data)
                                     Fourth Quarter       12 Months
                                    ----------------  ----------------
                                     2009      2008    2009      2008
                                    ----------------  ----------------
 Sales                               $7,214   $7,201  $26,704  $26,862
 Operating Income (Loss)               (322)     138     (215)     331

 Income (Loss) from Continuing
  Operations                           (455)      45     (536)      86
 Income (Loss) from Discontinued
  Operation                              --        3       (1)      --
                                    ----------------  ----------------
 Net Income (Loss)                    $(455)     $48    $(537)     $86

 Earnings (Loss) Per Diluted Share:
  Earnings (Loss) from Continuing
   Operations                        $(1.22)   $0.12   $(1.44)   $0.24
  Earnings from Discontinued
   Operation                             --     0.01       --       --
                                    ----------------  ----------------
  Net Income (Loss)                  $(1.22)   $0.13   $(1.44)   $0.24
                                    ----------------  ----------------

  Goodwill Impairment Charge          (1.50)      --    (1.50)      --
                                    ----------------  ----------------
  Net Income excluding Goodwill
   Impairment Charge                  $0.28    $0.13    $0.06    $0.24
                                    ----------------  ----------------

 * Fourth Quarter and 12 Months Fiscal 2009 - Included $560 million,
   or $1.50 per share, related to a non-cash goodwill impairment
   charge recorded in our Beef segment. The recent disruptions in
   global credit and other financial markets and deterioration of
   economic conditions resulted in a significant increase in our
   discount rate used in the goodwill valuation, which led to partial
   impairment of our Beef segment's goodwill.
 * 12 Months Fiscal 2009 - Included $15 million, or $0.02 per diluted
   share, of pretax charges related to a plant closing.
 * 12 Months Fiscal 2009 - Loss from discontinued operation included
   a $10 million, or $0.02 per diluted share, of pretax loss on sale
   of Lakeside Farm Industries.

"We have made tremendous progress in a relatively short period of time," said Leland Tollett, who on Thursday stepped down after serving 11 months as interim president and chief executive officer of Tyson Foods. "I have complete confidence that the new management team will have a positive impact as the company moves forward."

"Our operating cash flow exceeded $1 billion in fiscal 2009, which helped us make progress on our debt level," said Donnie Smith, Tyson's new president and chief executive officer. "All operating segments were profitable in the fourth quarter, with Beef, Pork and Prepared Foods within or above historical operating margin ranges, excluding the goodwill impairment. These three segments are operating very well, and measures are in place for more improvement in our Chicken segment. The team knows what to do, and now it's a matter of execution."

"Fiscal 2010 should be a much better year," according to Jim Lochner, Tyson's new chief operating officer. "We think Beef, Pork and Prepared Foods will continue with a solid performance, and we expect the steps we've taken to improve Chicken will manifest themselves. Also, USDA data point to lower overall protein supplies, and there is potential for good demand improvement as the global economy recovers."

Our accounting cycle resulted in a 14-week fourth quarter and 53-week year in fiscal 2009, as compared to a 13-week fourth quarter and 52-week year in fiscal 2008.



 Segment Performance Overview (in millions)
 ------------------------------------------

 ---------------------------------------------------------------------
                                Sales
   (for the fourth quarter and 12 months ended October 3, 2009, and
                         September 27, 2008)
 ---------------------------------------------------------------------
                  Fourth Quarter                  12 Months
           -----------------------------------------------------------
                                  Avg.                           Avg.
                         Volume  Price                  Volume  Price
            2009   2008  Change  Change  2009     2008  Change  Change
           -----------------------------------------------------------
 Chicken   $2,649 $2,383  10.4%   0.6%    9,660  $8,900  8.8%   (0.2)%
 Beef       2,967  3,101  14.0% (16.0)%  10,782  11,664  0.5%   (8.0)%
 Pork         865  1,000  13.4% (23.8)%   3,426   3,587  1.7%   (6.1)%
 Prepared
  Foods       733    717  11.7%  (8.4)%   2,836   2,711  5.2%   (0.6)%
           -----------------------------------------------------------
 Total     $7,214 $7,201  12.2% (10.7)% $26,704 $26,862  4.4%   (4.8)%
           -----------------------------------------------------------


 ---------------------------------------------------------------------
                       Operating Income (Loss)
   (for the fourth quarter and 12 months ended October 3, 2009, and
                         September 27, 2008)
 ---------------------------------------------------------------------
                  Fourth Quarter                  12 Months
 ---------------------------------------------------------------------
                            Operating                      Operating
                             Margin                         Margin
            2009   2008   2009    2008   2009     2008   2009    2008
           -----------------------------------------------------------
 Chicken     $32   $(91)   1.2%  (3.8)%  $(157)  $(118) (1.6)%  (1.3)%
 Beef       (440)   159  (14.8)%  5.1%    (346)    106  (3.2)%   0.9%
 Pork         48     75    5.5%   7.5%     160     280   4.7%    7.8%
 Prepared
  Foods       39     (5)   5.3%  (0.7)%    133      63   4.7%    2.3%
 Other        (1)    --    n/a    n/a       (5)     --   n/a     n/a
           -----------------------------------------------------------
 Total     $(322)  $138  (4.5)%   1.9%   $(215)   $331  (0.8)%   1.2%
           -----------------------------------------------------------

 Operating results excluding $560 million goodwill impairment charge:
           -----------------------------------------------------------
 Beef        $120   $159   4.0%    5.1%   $214    $106   2.0%    0.9%
           -----------------------------------------------------------
 Total       $238   $138   3.3%    1.9%   $345    $331   1.3%    1.2%
           -----------------------------------------------------------

Fiscal 2010 Outlook

Segments:

Chicken - At the end of fiscal 2009, industry pullet placements were down 5-6% as a result of weaker demand. However, we expect demand will improve as we get further into fiscal 2010, and we expect the pricing environment to improve aided by cold storage inventories which are down relative to the levels we have seen over the last several years. We also currently expect to see grain costs down as compared to fiscal 2009. Additionally, we will continue to focus on making operational improvements to help maximize our margins.

Beef - While we expect a reduction in cattle supplies of 1-2% in fiscal 2010, we do not expect a significant change in the fundamentals of our Beef business as it relates to fiscal 2009. We expect adequate supplies to operate our plants. We will manage our spreads by maximizing our revenues through product mix, minimizing our operating costs, while keeping our focus on quality and customer service.

Pork - We expect to see a gradual decline in hog supplies through the first half of fiscal 2010, which will accelerate into the second half of fiscal 2010, resulting in industry slaughter slightly higher than 2007 (or roughly 4% less than fiscal 2009). However, we still believe we will have adequate supplies in the regions in which we operate. We will manage our spreads by continuing to control our costs and maximizing our revenues.

Prepared Foods - Raw material costs will likely increase in fiscal 2010, but we have made some changes in our sales contracts that move us further away from fixed price contracts toward formula pricing, which will better enable us to absorb rising raw material costs. With the changes we have made with our sales contracts and the operational efficiencies we made during fiscal 2009, we expect strong results in fiscal 2010.



 Interest Expense - approximately $320 million
 Effective Tax Rate - approximately 38%
 Capital Spending - approximately $600 million 


 Segment Performance Review
 --------------------------

 Chicken
 in millions
 ---------------------------------------------------------------------
                       Three Months Ended        12 Months Ended
 ---------------------------------------------------------------------
                    Oct. 3,  Sept. 27,        Oct. 3, Sept. 27,
                     2009      2008   Change   2009     2008    Change
 ---------------------------------------------------------------------
 Sales              $2,649   $2,383    $266  $9,660     $8,900  $760
 Sales Volume
  Change                               10.4%                     8.8%
 Avg. Sales Price
  Change                                0.6%                    (0.2)%

 Operating Income
  (Loss)               $32     $(91)   $123   $(157)     $(118) $(39)
 Operating Margin      1.2%    (3.8)%          (1.6)%     (1.3)%
 ----------------------------------------------------------------------

 12 months of fiscal 2008
  * Included $26 million of charges related to: plant closings;
    impairments of unimproved real property and software; and
    severance.

 Fourth quarter and 12 months - Fiscal 2009 vs Fiscal 2008
  * Sales Volume - The increase in sales volume for both the fourth
    quarter and 12 months of fiscal 2009 was due to the extra week in
    fiscal 2009, as well as inventory reductions and sales volume
    related to recent acquisitions.
  * Average Sales Price - The inventory reductions and recent
    acquisitions lowered the average sales price, as most of the
    inventory reduction related to commodity products shipped
    internationally and sales volume from recent acquisitions was on
    lower priced products.

  * Operating Income (Loss) -
    * Operational Improvements - Operating results were positively
      impacted by operational improvements, which included: yield, mix
      and live production performance improvements; additional
      processing flexibility; and reduced interplant product movement.
    * Derivative Activities - Operating results included the following
      amounts for commodity risk management activities related to
      grain and energy purchases. These amounts exclude the impact
      from related physical purchase transactions, which impact
      current and future period operating results.

               Income/(Loss) - in millions      Qtr      YTD
                                             ------------------
                                      2009      $(9)    $(257)
                                      2008       65      206
                                             ------------------
                                   Decline     $(74)    $(463)

    * Grain Costs - As compared to the same periods of fiscal 2008,
      operating results were positively impacted in the fourth quarter
      and 12 months of fiscal 2009 by a decrease in grain costs of
      $109 million and $28 million, respectively.
    * SG&A Expenses - We reduced our selling, general and
      administrative expenses during fiscal 2009 by approximately
      $37 million.


 Beef
 in millions
 ---------------------------------------------------------------------
                       Three Months Ended        12 Months Ended
 ---------------------------------------------------------------------
                    Oct. 3,  Sept. 27,        Oct. 3, Sept. 27,
                     2009      2008   Change   2009     2008    Change
 ---------------------------------------------------------------------
 Sales              $2,967   $3,101  $(134)  $10,782  $11,664  $(882)
 Sales Volume Change                  14.0%                      0.5%
 Avg. Sales Price
  Change                             (16.0)%                    (8.0)%

 Operating Income
  (Loss)            $(440)   $  159  $(599)    $(346)    $106  $(452)
 Operating Margin   (14.8)%     5.1%            (3.2)%    0.9%
 ---------------------------------------------------------------------

 Operating results excluding $560 million goodwill impairment charge:
 Operating Income     $120     $159   $(39)     $214     $106   $108
 Operating Margin      4.0%     5.1%             2.0%     0.9%
 ---------------------------------------------------------------------

 Fourth quarter and 12 months of fiscal 2009
  * Included $560 million non-cash charge related to the impairment of
    goodwill.
 Fourth quarter of fiscal 2008
  * Included $8 million charge related to the impairment of an
    intangible asset.
 12 months of fiscal 2008
  * Included $35 million of charges related to: plant restructuring,
    impairments of packaging equipment and intangible assets, and
    severance.


 Fourth quarter and 12 months - Fiscal 2009 vs Fiscal 2008
  * Sales and Operating Income (Loss) -
    * While our average sales prices have decreased as compared to the
      same periods in 2008, we have still maintained a margin as the
      average live costs decreased in line with the drop in our
      average sales price. Excluding the $560 million non-cash
      goodwill impairment charge, our operating margins were 4.0% and
      2.0%, respectively, for the fourth quarter and 12 months of
      fiscal 2009. The fourth quarter operating margin exceeded our
      historical normalized operating margin range, while the 12
      months of fiscal 2009 was within the historical normalized
      operating margin range, which is 1.5-3.0%.
    * Derivative Activities - Operating results included the following
      amounts for commodity risk management activities related to
      forward futures contracts for live cattle. These amounts exclude
      the impact from related physical sale and purchase transactions,
      which impact current and future period operating results.

                     Income - in millions       Qtr      YTD
                                             ------------------
                                      2009       $5     $102
                                      2008       73       53
                                             ------------------
                   Improvement / (Decline)     $(68)     $49


 Pork
 in millions
 ---------------------------------------------------------------------
                       Three Months Ended        12 Months Ended
 ---------------------------------------------------------------------
                    Oct. 3,  Sept. 27,        Oct. 3, Sept. 27,
                     2009      2008   Change   2009     2008    Change
 ---------------------------------------------------------------------
 Sales                $865   $1,000  $(135)  $3,426    $3,587  $(161)
 Sales Volume
  Change                              13.4%                      1.7%
 Avg. Sales Price
  Change                             (23.8)%                    (6.1)%

 Operating Income      $48      $75   $(27)    $160      $280  $(120)
 Operating Margin      5.5%     7.5%            4.7%      7.8%
 ---------------------------------------------------------------------

 12 months of fiscal 2008
  * Included $5 million of charges related to impairment of packaging
    equipment and severance.

 Fourth quarter and 12 months - Fiscal 2009 vs Fiscal 2008
  * Sales and Operating Income -
    * Operating results for fiscal 2009 were strong, but down when
      compared to the record year we had in fiscal 2008. While sales
      volume increased compared to the fourth quarter of fiscal 2008
      and were relatively flat versus the 12 months of fiscal 2008,
      results were negatively impacted by a decrease in our average
      sales prices, which were only partially offset by the decrease
      in average live costs. Our operating margins were 5.5% and 4.7%,
      respectively, for the fourth quarter and 12 months of fiscal
      2009. The fourth quarter operating margin exceeded our
      historical normalized operating margin range, while the 12
      months of fiscal 2009 was within the historical normalized
      operating margin range, which is 3.0-5.0%.
    * Derivative Activities - Operating results included the following
      amounts for commodity risk management activities related to
      forward futures contracts for live hogs. These amounts exclude
      the impact from related physical sale and purchase transactions,
      which impact current and future period operating results.

                      Income - in millions      Qtr      YTD
                                             ------------------
                                      2009       $8      $55
                                      2008       13       95
                                             ------------------
                                   Decline      $(5)    $(40)


 Prepared Foods
 in millions
 ---------------------------------------------------------------------
                       Three Months Ended        12 Months Ended
 ---------------------------------------------------------------------
                    Oct. 3,  Sept. 27,        Oct. 3, Sept. 27,
                     2009      2008   Change   2009     2008    Change
 ---------------------------------------------------------------------
 Sales                $733     $717    $16   $2,836    $2,711   $125
 Sales Volume
  Change                              11.7%                      5.2%
 Avg. Sales Price
  Change                              (8.4)%                    (0.6)%

 Operating Income
  (Loss)               $39      $(5)   $44     $133       $63    $70
 Operating Margin      5.3%    (0.7)%           4.7%      2.3%
 ---------------------------------------------------------------------

 12 months of fiscal 2009
  * Included $15 million charge related to closing our Ponca City,
    Oklahoma, processed meats plant.
 12 months of fiscal 2008
  * Included $10 million of charges related to flood damage, an
    intangible asset impairment and severance.

 Fourth quarter and 12 months - Fiscal 2009 vs Fiscal 2008
  * Sales and operating income improved due to an increase in sales
    volume, as well as a reduction in raw material costs that exceeded
    the decrease in our average sales prices. In addition, we made
    several operational improvements in fiscal 2009 that allow us to
    run our plants more efficiently. We began realizing the majority
    of these improvements in our operating results during the fourth
    quarter fiscal 2009.


                          TYSON FOODS, INC.
             CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                 (In millions, except per share data)
                             (Unaudited)

                                Three Months Ended    12 Months Ended
                                ------------------  ------------------
                                 Oct. 3,  Sept. 27,  Oct. 3,  Sept. 27,
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Sales                          $ 7,214   $ 7,201   $26,704   $26,862
 Cost of Sales                    6,752     6,844    25,501    25,616
                                --------  --------  --------  --------
                                    462       357     1,203     1,246
 Selling, General and
  Administrative                    224       219       841       879
 Goodwill impairment                560        --       560        --
 Other Charges                       --        --        17        36
                                --------  --------  --------  --------

 Operating Income  (Loss)          (322)      138      (215)      331
 Other (Income) Expense:
  Interest income                    (3)       (2)      (17)       (9)
  Interest expense                   85        56       310       215
  Other, net                         --        (5)       18       (29)
                                --------  --------  --------  --------
 Income (Loss) from Continuing
  Operations before Income Taxes
  and Minority Interest            (404)       89      (526)      154
 Income Tax Expense                  52        44        14        68
                                --------  --------  --------  --------
 Income (Loss) from Continuing
  Operations before Minority
  Interest                         (456)       45      (540)       86
 Minority Interest                   (1)       --        (4)       --
                                --------  --------  --------  --------
 Income (Loss) from Continuing
  Operations                       (455)       45      (536)       86
 Income (Loss) from Discontinued
  Operation                          --         3        (1)       --
                                --------  --------  --------  --------
 Net Income (Loss)              $  (455)  $    48   $  (537)  $    86
                                ========  ========  ========  ========

 Weighted Average Shares
  Outstanding:
  Class A Basic                     302       283       302       281
  Class B Basic                      70        70        70        70
  Diluted                           372       358       372       356
 Earnings (Loss) Per Share from
  Continuing Operations:
  Class A Basic                 $ (1.25)  $  0.13   $ (1.47)  $  0.25
  Class B Basic                 $ (1.12)  $  0.11   $ (1.32)  $  0.22
  Diluted                       $ (1.22)  $  0.12   $ (1.44)  $  0.24
 Earnings Per Share from
  Discontinued Operation:
  Class A Basic                 $    --   $  0.01   $    --   $    --
  Class B Basic                 $    --   $  0.01   $    --   $    --
  Diluted                       $    --   $  0.01   $    --   $    --
 Net Earnings (Loss) Per Share:
  Class A Basic                 $ (1.25)  $  0.14   $ (1.47)  $  0.25
  Class B Basic                 $ (1.12)  $  0.12   $ (1.32)  $  0.22
  Diluted                       $ (1.22)  $  0.13   $ (1.44)  $  0.24
 Cash Dividends Per Share:
  Class A                       $ 0.040   $ 0.040   $ 0.160   $ 0.160
  Class B                       $ 0.036   $ 0.036   $ 0.144   $ 0.144

 Sales Growth (Decline)             0.2%               (0.6)%
 Margins: (Percent of Sales)
  Gross Profit                      6.4%      5.0%      4.5%      4.6%
  Operating Income (Loss)          (4.5)%     1.9%     (0.8)%     1.2%
  Net Income (Loss)                (6.3)%     0.7%     (2.0)%     0.3%
 Effective Tax Rate from
  Continuing Operations           (13.0)%    50.1%     (2.7)%    44.6%


                          TYSON FOODS, INC.
                CONSOLIDATED CONDENSED BALANCE SHEETS
                            (In millions)
                             (Unaudited)

                                             October 3,   September 27,
                                                2009          2008
                                            ------------  ------------
 Assets
 Current Assets:
  Cash and cash equivalents                 $      1,004  $        250
  Restricted cash                                    140            --
  Accounts receivable, net                         1,100         1,271
  Inventories                                      2,009         2,538
  Other current assets                               122           143
  Assets of discontinued operation held for
   sale                                               --           159
                                            ------------  ------------
 Total Current Assets                              4,375         4,361
 Restricted cash                                      43            --
 Net Property, Plant and Equipment                 3,576         3,519
 Goodwill                                          1,917         2,511
 Intangible Assets                                   187           128
 Other Assets                                        497           331
                                            ------------  ------------
 Total Assets                               $     10,595  $     10,850
                                            ============  ============

 Liabilities and Shareholders' Equity
 Current Liabilities:
  Current debt                              $        219  $          8
  Trade accounts payable                           1,013         1,217
  Other current liabilities                          761           878
                                            ------------  ------------
 Total Current Liabilities                         1,993         2,103
 Long-Term Debt                                    3,333         2,888
 Deferred Income Taxes                               280           291
 Other Liabilities                                   539           525
 Minority Interest                                    98            29
 Shareholders' Equity                              4,352         5,014
                                            ------------  ------------
 Total Liabilities and Shareholders'
  Equity                                    $     10,595  $     10,850
                                            ============  ============


                          TYSON FOODS, INC.
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                            (In millions)
                             (Unaudited)

                                                  12 Months Ended
                                            --------------------------
                                             October 3,   September 27,
                                                2009          2008
                                            ------------  ------------
 Cash Flows From Operating Activities:
  Net income (loss)                         $       (537) $         86
  Depreciation and amortization                      496           493
  Deferred income taxes                              (26)           35
  Impairment of goodwill                             560            --
  Other, net                                         100            83
  Net changes in working capital                     432          (409)
                                            ------------  ------------
 Cash Provided by Operating Activities             1,025           288
                                            ------------  ------------

 Cash Flows From Investing Activities:
  Additions to property, plant and equipment        (368)         (425)
  Proceeds from sale of property, plant and
   equipment                                           9            26
  Proceeds from sale of investments                   15            22
  Purchases of marketable securities                 (37)         (115)
  Proceeds from sale of marketable
   securities                                         56           112
  Change in restricted cash to be used for
   investing activities                              (43)           --
  Acquisitions, net of cash acquired                 (93)          (17)
  Proceeds from sale of discontinued
   operation                                          75            --
  Other, net                                         (41)           (2)
                                            ------------  ------------
 Cash Used for Investing Activities                 (427)         (399)
                                            ------------  ------------

 Cash Flows From Financing Activities:
  Net borrowings (payments) on revolving
   credit facilities                                  15          (213)
  Payments of debt                                  (380)         (147)
  Net proceeds from borrowings of debt               852           449
  Net proceeds from Class A Stock offering            --           274
  Convertible note hedge transactions                 --           (94)
  Warrant transactions                                --            44
  Debt issuance costs                                (59)           --
  Purchases of treasury shares                       (19)          (30)
  Dividends                                          (60)          (56)
  Change in negative book cash balances              (65)           67
  Change in restricted cash to be used for
   financing activities                             (140)           --
  Stock options exercised and other, net               6            27
                                            ------------  ------------
 Cash Provided by Financing Activities               150           321
                                            ------------  ------------

 Effect of Exchange Rate Change on Cash                6            (2)
                                            ------------  ------------

 Increase in Cash and Cash Equivalents               754           208
 Cash and Cash Equivalents at Beginning of
  Year                                               250            42
                                            ------------  ------------
 Cash and Cash Equivalents at End of Year   $      1,004  $        250
                                            ============  ============

Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 90 countries. The company has approximately 117,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.

The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224

A conference call to discuss the Company's financial results will be held at 9 a.m. Eastern Monday, November 23, 2009. To listen live via telephone, call 888-324-8506. A pass code and the leader's name will be required to join the call. The pass code is Tyson Foods and the leader's name is Ruth Ann Wisener. International callers dial 517-308-9399. The call also will be webcast live on the Internet at http://ir.tyson.com. Financial information, such as this news release, as well as other supplemental data, including Company distribution channel information, can be accessed from the Company's web site at http://ir.tyson.com. A telephone replay will be available through December 23 at 800-873-2049. International callers dial 402-220-5369.

Forward-Looking Statements

Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected earnings and results. These forward-looking statements are subject to a number of factors and uncertainties which could cause our actual results and experiences to differ materially from the anticipated results and expectations, expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the effect of, or changes in, general economic conditions; (ii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (iii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (iv) successful rationalization of existing facilities and operating efficiencies of the facilities; (v) risks associated with our commodity trading risk management activities; (vi) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (vii) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (viii) changes in availability and relative costs of labor and contract growers and our ability to maintain good relationships with employees, labor unions, contract growers and independent producers providing us livestock; (ix) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (x) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xi) significant marketing plan changes by large customers or loss of one or more large customers; (xii) adverse results from litigation; (xiii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xiv) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws and occupational, health and safety laws; (xv) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (xvi) effectiveness of advertising and marketing programs; and (xvii) those factors listed under Item 1A. "Risk Factors" included in our October 3, 2009, Annual Report filed on Form 10-K.

Contact:

Tyson Foods, Inc.
Media Contact:
Gary Mickelson
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