Tyson Remains Optimistic About FY2013 Results Despite Near-Term Challenges
NEW YORK, Feb. 26, 2013 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) today
told investors at the Goldman Sachs 17^th Annual Agribusiness Conference that
its second fiscal quarter has been more challenging than anticipated due to
margin compression in its Beef and Pork segments; however, the company remains
optimistic about its results for the full year.
James Lochner, Tyson's chief operating officer, said, "Margins have been
compressed throughout the past month as the value of beef has fallen more than
the price of cattle. Historically, adjustments occur that allow for a spread
between the revenue and the cattle cost. We run our plants for margin, not
Tyson's pork business also experienced some margin compression in the current
quarter, although there have been signs of improvement recently, Lochner
said."We expect to continue our strong performance in the back half of the
year," he said.
Meanwhile, Tyson's Chicken segment has continued to do well. The company has
said it expects a strong performance, particularly in the second half of the
fiscal year, leading to continued optimism that the company's full-year
results will be better than fiscal 2012.
"Demand is strong, and we're seeing signs of consumers trading from beef to
chicken," Lochner said. "Even with pricing up substantially year over year,
chicken is a good value for consumers, and food service continues to promote
Lochner announced that Tyson is launching a new line of all natural chicken
under the new NatureRaised Farms™ brand. The product line will include a
variety of fresh products produced from cage-free chickens raised without the
use of antibiotics or added hormones and fed a 100% vegetarian diet.
NatureRaised Farms™ brand fresh chicken will be available for sale to
retailers in April, and is just one example of how the company is growing
offerings in higher margin, value-added products.
Dennis Leatherby, Tyson's executive vice president and chief financial
officer, told investors at the conference there is value in the diversity of
Tyson's multi-protein, multi-channel, multi-national business.
"We're going to grow sales of domestic value-added chicken and prepared
foods," Leatherby said. "We're not a commodity protein company. That's not our
goal, nor our destiny. Value added is currently about a third of our sales,
which includes food service as well as branded retail products. Looking ahead
to 2014 and beyond, we expect total company top-line sales to grow 3-4%
annually, and value-added sales should grow 6-8% a year. We expect sales from
international production to grow at an annual rate of 12-16%. International
growth is focused on production and further processing in Brazil, China and
India, in addition to our long-standing poultry business in Mexico. We're
able to execute this growth strategy because we have a strong capital
structure, and that creates opportunities for us."
About Tyson Foods
Tyson Foods, Inc. (NYSE:TSN), 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
services to customers throughout the United States and approximately 130
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.
The Tyson Foods, Inc. logo is available at
Forward Looking Statements
This release includes forward-looking statements as well as historical
information. These forward-looking statements may include statements relating
to domestic and international growth and cattle and hog supplies. Actual
results may vary. Factors that could cause actual results to differ from
those in the forward-looking statements include, but are not limited to:
consumer demand and perceptions; the availability of raw materials; customer
requests and requirements; and the ability to compete in products and prices
in a competitive industry.
CONTACT: Investor Contact: Jon Kathol, 479-290-4235
Media Contact: Gary Mickelson, 479-290-6111
Tyson Foods, Inc. Logo
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