Tyson Foods 8-K 2010
Media Contact: Gary Mickelson, 479-290-6111
Investor Contact: Ruth Ann Wisener, 479-290-4235
TYSON REPORTS FOURTH QUARTER
AND FISCAL YEAR 2010 RESULTS
Springdale, Arkansas – November 22, 2010 – >Tyson Foods, Inc. (NYSE: TSN), today reported the following results:
“Our results this quarter and this year are directly due to our diversified protein business models and our operational improvements, which have raised the level of expectations for Tyson’s performance,” said Donnie Smith, president and chief executive officer of Tyson Foods.
“We produced record sales and earnings despite some market headwinds,” Smith said. “Operating margins for the year were in or above their normalized ranges in each of our four segments. We generated more than $1.5 billion in operating income. Strong cash flows allowed us to repurchase or redeem nearly $1.0 billion of notes in the fiscal year. This reduced gross debt to $2.5 billion and net debt to $1.6 billion, bringing our debt to its lowest level in nearly a decade.
“We’re just over halfway through our first quarter of fiscal 2011, and it is shaping up to be a strong quarter and another good year,” Smith said. “There are always challenging market conditions to manage. That’s the norm in our business, and we’re prepared to address them.”
Our accounting cycle resulted in a 13-week fourth quarter and 52-week year in fiscal 2010, as compared to a 14-week fourth quarter and 53-week year in fiscal 2009.
Segment Performance Review (in millions)
Segment Performance Review
Chicken Segment Results
Beef Segment Results
Pork Segment Results
Prepared Foods Segment Results
TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In millions, except per share data)
TYSON FOODS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world’s largest processors and marketers 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 100 countries. The company has approximately 115,000 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.
A conference call to discuss the Company’s financial results will be held at 9 a.m. Eastern Monday, November 22, 2010. To listen live via telephone, call 888-790-1749. 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 210-234-0002. 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 until December 24 at 888-568-0091 and will also be archived for one year at http://ir.tyson.com.
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 purchasing 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, agricultural 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 2, 2010, Annual Report filed on Form 10-K.