Springdale, AR - Tyson Foods, Inc. announced that it continues to experience pressure on earnings and that it will not meet analysts' earnings expectations.
Tyson management stated during their presentation at the Consumer Analyst Group of New York Conference held in Naples, FL on February 17, that industry conditions were very difficult at that time due to excess supplies of meats and pressures brought about by the economic problems in Asia. These conditions have continued throughout the quarter. In addition, Tyson is in the process of integrating the Hudson acquisition which, while on schedule, has caused some intermediate pressures on profitability.
"Even in light of these problems, there are a lot of good things happening. The tone of the industry is better than it has been in a long time, as evidenced by lower corn and soybean meal prices as well as by a slight increase in poultry prices in general. Production costs are declining. Pricing has improved somewhat in the last few weeks, but we still need some help from the marketplace," said Leland Tollett, Chairman and CEO. "As we indicated to analysts attending the CAGNY Conference, as the year progresses into the second half of our fiscal year, we expect marked improvements in our business. We have everything in place to reap the benefits when we finish assimilating Hudson Foods and the dynamics in the marketplace improve."
Tyson Foods is the world's largest producer, processor and marketer of chicken and chicken products as well as other convenience food items.
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