SPRINGDALE, Ark., May 25 /PRNewswire-FirstCall/ -- The new CEO of Tyson
Foods (NYSE: TSN) outlined his strategy for returning the company to
profitability, which includes at least $110 million in spending cuts, Tyson
officials reported today.
In a video presentation to the company's Team Members, Richard L. Bond
reaffirmed his commitment to Tyson's Core Values established by Chairman
John Tyson, as well as the company's long-term strategy of creating more
value- added products, improving operational efficiencies and expanding its
international business.
"I continue to believe our long-term strategies are still very sound
and provide us with a focused long-term perspective for the future," he
said.
Bond also indicated the company's single most important short-term goal
is to "return our company to profitability now." He said, "We must take
control of things we know or believe are in our control and get
laser-focused on our current business opportunities."
To achieve this objective, he has proposed three measures. He wants the
company to return to a "commodity mindset" in its approach to its commodity
businesses, create an overall culture of "agility" and improve cost
management.
While Tyson Foods is producing more value-added products, more than
half of the company's revenue is from commodity products, which typically
provide a smaller profit margin. Bond wants the company to approach this
business with more of a "commodity mindset" and "sense of urgency."
He also wants to create a culture of agility. In other words, he wants
management to focus more time on activities that make money and provide top
line growth.
In addition, Bond wants immediate cost management and cost reduction.
He has asked John Lea, Senior Group Vice President and Chief Development
Officer, to oversee an initiative to identify at least $110 million in
spending that can be eliminated from the company's fiscal 2007 plan. Every
area of the company will be asked to do an in-depth review of such things
as staffing, programs, reports, information requests, travel and
entertainment expenses and consulting fees as well as opportunities for
improvement. Bond has asked that this review take no more than a month, so
managers have a clear picture of the company's budget parameters as they
prepare their plans for fiscal 2007. The new fiscal year begins October 1,
2006.
Tyson Foods, Inc., 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 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(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. The company has
approximately 114,000 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.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
CONTACT:
Gary Mickelson of Tyson Foods, Inc.,
+1-479-290-6111
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