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Tyson Posts $537 Million Loss

24 November 2009

US - US meat processing giant Tyson Foods made a net loss over the last year of $537 million, compared to a profit of $86 million in the previous year.

In the fourth quarter of the 2009 financial year Tyson made a loss of $455 million compared to a profit for the same period in the previous year of $48 million.

Over the year sales fell slightly to $26,704 million from $26,862 in 2008. In the last quarter of the year, however, sales saw an upward turn to $7,214 million from $7,201 million.

"We have made tremendous progress in a relatively short period of time," said Leland Tollett, who on Thursday stepped down after serving 11 months as interim president and chief executive officer of Tyson Foods.

"I have complete confidence that the new management team will have a positive impact as the company moves forward."

"Our operating cash flow exceeded $1 billion in fiscal 2009, which helped us make progress on our debt level," said Donnie Smith, Tyson's new president and chief executive officer.

"All operating segments were profitable in the fourth quarter, with Beef, Pork and Prepared Foods within or above historical operating margin ranges, excluding the goodwill impairment. These three segments are operating very well, and measures are in place for more improvement in our Chicken segment. The team knows what to do, and now it's a matter of execution."

"Fiscal 2010 should be a much better year," according to Jim Lochner, Tyson's new chief operating officer.

"We think Beef, Pork and Prepared Foods will continue with a solid performance, and we expect the steps we've taken to improve Chicken will manifest themselves. Also, USDA data point to lower overall protein supplies, and there is potential for good demand improvement as the global economy recovers.

"Our accounting cycle resulted in a 14-week fourth quarter and 53-week year in fiscal 2009, as compared to a 13-week fourth quarter and 52-week year in fiscal 2008."

TheCattleSite News Desk


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