SPRINGDALE, Ark., Feb. 2, 2007 (PRIME NEWSWIRE) -- Efforts to return Tyson Foods, Inc. (NYSE:TSN) to profitability are "paying off," senior executives told shareholders today at the company's annual meeting.
"We've taken steps in the right direction and our business is getting back on track," said Chairman John Tyson. "I think Tyson Team Members are excited about all the work they've been doing to bring the company back to profitability... their hard work is paying off."
After losses in three consecutive quarters, Tyson this week reported $57 million in net earnings or $0.16 diluted earnings per share for the first quarter of fiscal 2006.
"It was the best quarter we've had since the fourth quarter of fiscal 2005 and it's the result of an overall strengthening in all our core businesses as well as a focus on controlling costs," said Wade Miquelon, Tyson's chief financial officer. The company currently expects to remain profitable, estimating diluted earnings per share for fiscal 2007 in the range of $0.50 to $0.80.
Tyson President and CEO Richard L. Bond attributes some of the company's progress to Team Member efforts to institute a $200 million Cost Management Initiative. "We have implemented those measures and they are already showing up on the bottom line," he said.
Bond also described other measures the company is taking to remain profitable. He noted Tyson managers are working in several cross-functional teams as part of the "Power Performance through Profitability" initiative, also known as "P3." This effort focuses on the following areas:
* Demand creation -- This involves a renewed approach to product
innovation and consumer insight. This process is also
bolstered by the recent opening of the Discovery Center,
Tyson's new product research and development complex.
* Price optimization -- More than raising prices, this initiative
entails driving value and value creation with customers.
* Supply chain optimization -- This effort involves such things
as streamlining operations and the number of stock keeping
units.
* Performance-based alignment -- Re-energizing Team Members and
the culture of the company is extremely important to the
company's future success.
"P3 will help us execute our long-term strategy to create more value-added products, improve operational efficiencies and expand our international business," Bond said.
During the business portion of the annual meeting, shareholders elected 10 members to the Tyson Board of Directors, including five independent directors. Those elected were Dick Bond, Scott Ford, Lloyd Hackley, Jim Kever, Jo Ann Smith, Leland Tollett, Barbara Tyson, Don Tyson, John Tyson and Albert Zapanta. In other business, an amendment to the Tyson 2000 Stock Incentive plan was approved, Ernst & Young LLP was ratified as independent auditor for 2007 and a shareholder proposal by the People for Ethical Treatment of Animals was defeated.
Tyson Foods, Inc. (NYSE:TSN), 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, which are marketed under the "Powered by Tyson(r)" strategy. Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers throughout the United States and more than 80 countries. The company has approximately 107,000 Team Members employed at more than 300 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.
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