SAN FRANCISCO, Sept. 20 /PRNewswire-FirstCall/ -- Challenging times
will ultimately benefit Tyson Foods, Inc. (NYSE: TSN), according to the
company's chief financial officer, because they have prompted Tyson to
re-examine every aspect of its business.
Wade Miquelon, executive vice president and CFO of Tyson Foods, spoke
to investors Wednesday at the Bank of America 36th Annual Investment
Conference in San Francisco.
"While I believe the past year will be shown as an anomaly ... we don't
want to make excuses and realize it's our responsibility to drive
shareholder value in good times and bad," Miquelon said.
Tyson has experienced financial losses in fiscal 2006; however,
Miquelon reported the company has responded by "challenging every aspect of
our business, our business models and how we create value. As a team, we're
on the journey of reinventing and transforming Tyson."
Miquelon said the company is focused on becoming even better at
creating demand. "We've done a good job in areas like innovation and
branding, but we can do more," he said. "One intervention example is the
company's new 'Discovery Center,' a research and development facility that
will be a hub of innovation and consumer insights." This new complex,
scheduled to open in early 2007 at the company's headquarters in
Springdale, Arkansas, will include a building that will house 18 test
kitchens. In addition, a USDA-inspected pilot plant is being built to
provide a manufacturing environment for product development and new
concepts to improve "speed to market."
To complement Tyson's strong management team, the company has also
hired several "stellar" outsiders. They include Group Vice President of
Consumer Products Rob DeMartini, who was a senior vice president for The
Gillette Company, and Group Vice President of International Rick Greubel,
who was formerly President of Monsanto Brazil.
Miquelon told the audience Tyson also aims to become even better at
price optimization. "This doesn't just mean raising prices," he said. "It
means optimizing our multi-protein portfolio, getting a better return on
our marketing and promotional spending, devoting more resources to partner
with loyal customers and maximizing the way we use our raw materials."
As previously reported, Tyson is also implementing approximately $200
million in cost reductions in an effort to help return the company to
profitability. Company officials believe more than 90% of these annual
savings will be fully delivered in fiscal year 2007. The $200 million does
not include a variety of other operational cost savings projects involving
such things as improvements in product yields and plant efficiencies.
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 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 110,000 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.
Forward-Looking Statements
Certain information contained in the press release may constitute
forward- looking statements, such as statements relating to implementing
cost savings initiatives and the opening of the "Discovery Center." These
forward-looking statements are subject to a number of factors and
uncertainties which could cause the company's actual results and
experiences to differ materially from the anticipated results and
expectations, expressed in such forward-looking statements. The company
wishes to caution readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made. Among the
factors that may cause actual results and experiences to differ from the
anticipated results and expectations expressed in such forward-looking
statements are the following: (i) fluctuations in the cost and availability
of inputs and raw materials, such as live cattle, live swine, or feed
grains, and energy; (ii) the company's ability to realize anticipated
savings from its cost reduction initiatives; (iii) market conditions for
finished products, including competition from other global and domestic
food processors, the supply and pricing of alternative proteins, and the
demand for alternative proteins; (iv) risks associated with effectively
evaluating derivatives and hedging activities; (v) access to foreign
markets together with foreign economic conditions, including currency
fluctuations, and import/export restrictions and foreign politics; (vi)
outbreak of a livestock disease (such as avian influenza (AI) or bovine
spongiform encephalopathy (BSE)) which could have an effect on livestock
owned by the company, the availability of livestock for purchase by the
company, consumer perception of certain protein products or the company's
ability to access certain domestic and foreign markets; (vii) successful
rationalization of existing facilities, and the operating efficiencies of
the facilities; (viii) changes in the availability and relative costs of
labor and contract growers, and the ability of the company to maintain good
relationships with employees, labor unions, contract growers and
independent producers providing livestock to the company; (ix) issues
related to food safety, including costs resulting from product recalls,
regulatory compliance and any related claims or litigation; (x) changes in
consumer preference and diets, and the company's ability to identify and
react to consumer trends; (xi) significant marketing plan changes by large
customers, or the loss of one or more large customers; (xii) adverse
results from litigation; (xiii) risks associated with leverage, including
cost increases due to rising interest rates or changes in debt ratings or
outlook; (xiv) changes in regulations and laws (both domestic and foreign),
including changes in accounting standards, tax laws, environmental laws and
occupational, health and safety laws; (xv) the ability of the company to
make effective acquisitions and successfully integrate newly acquired
businesses into existing operations; (xvi) effectiveness of advertising and
marketing programs; and (xvii) the effect of, or changes in, general
economic conditions.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Ruth Ann Wisener, +1-479-290-4235, both of Tyson
Foods, Inc.
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