010157 IBP to Take 2000 Charge, Sees Lower EPSJanuary 27, 2001New York - Beef processor IBP Inc. said it would take an additional charge for a 1998 acquisition, but also said that most of a government accounting probe concerned other transactions. In addition, the Dakota Dunes, S.D.-based company said 2000 earnings per diluted share would be between $2.07 and $2.13 a share before charges. Analysts had expected the company to post 2000 earnings of $2.25 a share, according to First Call/Thomson Financial. Tyson Foods Inc. earlier this month agreed to buy IBP for $3.2 billion in cash and stock, but Thursday said it would delay the acquisition due to an SEC probe into IBP's accounting. Tyson said the SEC made 45 comments regarding IBP's most recent financial statements. IBP confirmed the probe, saying it was not unusual and it had responded to the regulatory agency. IBP spokesman Gary Mickelson said one of the comments raised by the SEC pertained to the company's 1998 acquisition of DFG, a Chicago-based company that makes hors d'oeuvres and appetizers. Mickelson declined to specify the other issues being raised by the SEC, but said the probe also includes the company's 2000 acquisition of Corporate Brand Foods America. IBP said it would take an additional pretax charge of up to $47 million in 2000 after announcing a $9 million charge in November relating to inaccuracies in the financial statements of DFG. It said the additional adjustment was not an issue raised by the SEC. The company's management will meet with SEC officials Jan. 20 to discuss the adjustment. IBP also said it, “has continually advised Tyson of the status of the DFG matter since before the merger agreement was signed.” IBP is slated to release earnings in early February. It said the DFG-related charge will be accounted for as a 2000 charge and it is considering restating prior periods for the DFG charges.
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