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Tyson Foods Announces
Production Adjustment

Springdale, AR (March 1, 1996)óTyson Foods, Inc. (Nasdaq:TYSNA), the Springdale, Arkansas-based food processor, announced today its intention to adjust poultry production volume downward by approximately seven percent due to uncertainties in the marketplace caused by the recent curtailment of poultry shipments to Russia and the unprecedented high costs of grain and other feed ingredients.

Tyson Chairman and CEO Leland Tollett said that, "While our company has been profitable for each of the first five months of this fiscal year, the outlook for the immediate future has changed as a result of the interruption in the shipment of U.S.-produced poultry products to Russia. For more than eight years, our industry and our company have been supplying Russian customers with high-quality frozen poultry leg quarters. The possible loss of this market and the resulting impact that the disruption has already had on the domestic market come at a time when there is an abundant supply of all meat proteins in the market, both red meat and poultry. Additionally, feed costs are continuing to reach historic highs, which makes a difficult situation worse," said Tollett.

"We believe that this action is in the best interest of our shareholders, our contract grower community, and our people. Operationally, our company is in very good condition. However, we do expect that our second quarter and fiscal earnings will be less than recent financial analysts' estimates.

"Because of adverse economic conditions in all segments of the meat producing industry, we believe that industry-wide production adjustments will be made to more evenly match supply with demand and that these actions will consequently reduce the demand for grain and other feedstuffs.

"Our focus for the foreseeable future will be on increasing our earning power and improving total return to our shareholders, while providing a dependable supply of quality products for our customers and a stable environment for our growers and people. The company's continued sales growth momentum in our poultry business will provide a strong base for improved performance once feed price increases abate and as our cost/market ratio becomes more favorable.

"We have a dedicated team of people and a solid core market. We have always been able to come out of difficult business environments as a stronger, more profitable company," said Tollett. "I can't see this situation as being any different than those in the past."

    Contact:
    Ed Nicholson (501) 290-4591
    Corporate Public Relations Manager
    email: nicholsone@tyson.com