020907 Tyson Lowers Earnings Projections

Springdale, AR (AP) - Tyson Foods Inc. lowered its earnings projections for the fourth quarter and for fiscal 2002, blaming a restructuring of its swine operations and a marketing change. Its shares fell.

The company, the world's largest processor of beef, chicken and pork, said fourth-quarter earnings should be in the range of 13 cents to 15 cents per share and that fiscal 2002 earnings should be in the range of 97 cents to 99 cents per share.

On July 30, Tyson had projected fourth-quarter earnings in the range of 24 cents to 28 cents per share and fiscal 2002 earnings in the range of $1.08 to $1.12 per share.

Analysts surveyed by Thomson First Call expected Tyson would earn 26 cents a share in the fourth quarter and $1.05 a share for the year.

In trading Wednesday, Tyson shares fell 1.8%, or 22 cents a share, to close at $12.19 on the New York Stock Exchange.

Tyson's earnings report is expected Nov. 11.

The company said its fourth-quarter projections changed because of a planned charge of $20 million to $30 million before taxes to restructure its swine operations and the $27 million cost of conversion from its Thomas E. Wilson brand name.

Tyson is awaiting the outcome of a U.S. Department of Agriculture probe into the company's decision to reduce its live swine production.

The move would end Tyson contracts with 132 hog farmers in Arkansas and eastern Oklahoma, and the producers are also eager to learn the result of the federal inquiry. Tyson plans to shed 200 jobs.

A USDA team from the Grain Inspection, Packer and Stockyard Administration division visited the Tyson headquarters in Springdale on Aug. 22 and 23.

Nicholson said results of the investigation have not yet been released.

Tyson Foods last month that it will drop the Thomas E. Wilson brand of meat it acquired after taking on meatpacker IBP Inc. and will replace the brand name with its name on some beef and pork product lines.

Tyson said it will temporarily offer unbranded meat to stores wishing to use their own label.

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