011031 Tyson Says Little Sales Impact From Attacks

Chicago - Tyson Foods Inc. has felt little sales impact from the Sept. 11 attacks on the United States, although the Northeast and south Florida have had some weakness, Chief Executive John Tyson said.

Tyson also said the integration of the beef and pork businesses it acquired with IBP Inc. in September, creating the world's largest meat company, is going well. A decision on which companies to divest, if any, may be made within two or three months, he said.

Consumers may be eating out less since the attacks, particularly at more expensive restaurants, but as food service sales decline, retail sales to groceries increase, leaving little impact overall, Tyson said.

“In the Northeast, by the nature of where the event happened, business is 1off there,” Tyson sais at a food conference in Chicago. “You can go to the south Florida market, by nature of that being a large tourist destination for cruise ships and other activities, and that is down.”

However, in the Midwest and some other regions, business is equal to or a little better than last year, he added.

The IBP purchase created a company that has U.S. market shares of 20% in beef, 23% in chicken and 18% in pork.

Tyson is really integrating three separate companies in bringing Tyson and IBP together, because IBP unit Foodbrands America Inc. was formerly 16 independently owned and operated companies, Tyson said.

Tyson can easily integrate IBP's boxed beef and pork fresh meat business, he said. Integration of Foodbrands will take a bit more effort, he added.

“We have not made any final decisions as to what might be possible divestitures -- those companies that may just not fit our new business model,” Tyson said. “We are taking time on that in the next 60 to 90 days, and we may not divest of some of the smaller companies.”

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