FAYETTEVILLE, Ark., Feb. 4 /PRNewswire-FirstCall/ -- Tyson Foods
(NYSE: TSN) has generated an impressive list of accomplishments over the past
three years and developed a strategic plan for further growth, Chairman and
CEO John Tyson told shareholders today at the company's annual meeting.
Shareholders elected ten members to the Tyson Board of Directors,
including five independent directors, and voted on several items during the
meeting at Walton Art Center in Fayetteville, Arkansas. Workplace safety and
environmental stewardship awards were given and the company recognized 15 Team
Members as "Tyson Heroes."
In a presentation to shareholders, John Tyson noted that over the past
three years the company has moved beef and pork up the value chain, increasing
the company's mix of value-added products to 38%. The company has paid
$1.4 billion in debt, reducing the company's debt to capital ratio from 59% to
43.9%. Tyson has also implemented a "one face to the customer" strategy that
has led to new business opportunities and customers. In addition, the
company's stock price has outperformed the S&P 500.
"All of our accomplishments over the past three years helped us generate
record sales and earnings in fiscal 2004," Tyson said. In addition, the
company has developed a five-year strategic plan "to further grow our business
to become the premier branded protein company. Driving this plan is our new
marketing campaign, 'Powered by Tyson' that was launched this past year to
market our full range of chicken, beef and pork products under the Tyson
brand.
"The first quarter of fiscal 2005 was extremely difficult for our company
and we expect the second quarter to be equally as challenging, as we deal with
more of the same market problems in our red meat business," Tyson said,
"However, we continue to expect significant improvements in the second half of
the year."
Interim Chief Financial Officer Dennis Leatherby reported that capital
expenditures in fiscal 2005 are expected to be between $600 million to
$650 million. "This reflects increased spending for our third case ready
plant, our new R&D center, as well as other projects that will increase
automation and support our value-added product growth."
Chief Administrative Officer and International President Greg Lee noted
the company's fundamental long-term strategy "is to increase the amount of our
portfolio of value-added products." This involves leveraging the company's
strong customer base and product innovation capabilities, as well as brand and
market leadership. "We expect new products to contribute as much as three
quarters of a billion dollars in incremental revenue from the multi-protein
categories we will enter or create over the next five years in consumer
products and food service," he said.
President and Chief Operating Officer Dick Bond reported that the company
"accomplished our 38% value-added product mix (in fiscal 2004) by developing
400 new products and our goal is to increase this mix to 40% in fiscal 2005
and 50% by 2009." He cited the sales growth of Tyson bagged and frozen
chicken, case ready beef and pork, as well as bacon and fully-cooked
ingredient meats.
During the business portion of the meeting, current members of the Tyson
Board of Directors were elected for the upcoming year. They include Dick
Bond, Lloyd Hackley, David Jones, Jim Kever, Jo Ann Smith, Leland Tollett,
Barbara Tyson, Don Tyson, John Tyson and Albert Zapanta.
Shareholder votes on the following items were also reported:
* The Annual Incentive Compensation Plan for Senior Executive Officers
was approved.
* An amendment and restatement of the Tyson Foods 2000 Stock Incentive
Plan was approved.
* The selection of Ernst & Young LLP as the company's independent
auditor for the fiscal year ending October 1, 2005 was ratified.
* Shareholder proposals regarding the reporting of political
contributions and an environmental sustainability report were both
defeated.
A major part of the meeting involved the recognition of Tyson Team
Members, as well as contract poultry growers and independent livestock
suppliers, who have made a positive difference in their operations or
communities over the past year. [Visit the Tyson Web site
http://www.tysonfoodsinc.com/ ]
More than 30 Tyson managers were honored for their workplace safety
efforts. Some were inducted into the Chairman's Safety Circle, while others
received Excellence in Safety awards. The Chairman's Award for Best Overall
Safety was also given for the first time.
John Tyson presented seven national winners of Tyson's Environmental
Stewardship Award. The honor recognizes contract growers and independent
livestock suppliers who employ environmental stewardship and promote sound
conservation practices in their operations.
"Tyson Heroes" were also honored. These are Team Members from all areas
of the company who have gone "above and beyond the call of duty," providing
inspiration for their fellow team members and making a difference in their
communities. Their actions ranged from volunteering in their communities and
helping people in need, to saving lives.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale,
Arkansas, is the world's largest processor and marketer of chicken, beef, and
pork and the second-largest food company in the Fortune 500. The company
produces a wide variety of protein-based and prepared food products, which are
marketed under the "Powered by Tyson(TM)" 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. Tyson has approximately 114,000 Team Members employed at more
than 300 facilities and offices in the United States and around the world.
Forward-Looking Statements
Certain statements contained in this communication may be "forward-looking
statements" such as expectations for new products, those new products'
contribution to incremental sales, expected results for the second quarter and
full fiscal year, and projections on future capital expenditures. These
forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from historical
experience or from future results expressed or implied by such forward-looking
statements. Among the factors that may cause actual results to differ
materially from those expressed in, or implied by, the statements are the
following: (i) fluctuations in the cost and availability of raw materials,
such as live cattle, live swine or feed grains; (ii) changes in the
availability and relative costs of labor and contract growers; (iii) operating
efficiencies of facilities; (iv) market conditions for finished products,
including the supply and pricing of alternative proteins; (v) effectiveness of
advertising and marketing programs; (vi) the ability of the Company to make
effective acquisitions and successfully integrate newly acquired businesses
into existing operations; (vii) risks associated with leverage, including cost
increases due to rising interest rates; (viii) risks associated with
effectively evaluating derivatives and hedging activities; (ix) changes in
regulations and laws (both domestic and foreign), including changes in
accounting standards, environmental laws and occupational, health and safety
laws; (x) issues related to food safety, including costs resulting from
product recalls, regulatory compliance and any related claims or litigation;
(xi) adverse results from ongoing litigation; (xii) access to foreign markets
together with foreign economic conditions, including currency fluctuations;
and (xiii) the effect of, or changes in, general economic conditions. The
Company wishes to caution readers not to place undue reliance on any forward-
looking statements, which speak only as of the date made. Tyson undertakes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
http://www.tysonfoodsinc.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Louis Gottsponer, +1-479-290-4826, both of Tyson
Foods, Inc.
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