SPRINGDALE, Ark., May 3 /PRNewswire/ -- Tyson Foods, Inc. (NYSE: TSN),
today announced operating results for the second quarter and first six months
of fiscal year 1999 for the period ended April 3, 1999.
Diluted earnings per share for the second quarter of fiscal 1999 increased
180 percent to $0.28 from $0.10 last year. Earnings increased $41.3 million
to $64.6 million for the second quarter of fiscal 1999 compared to
$23.3 million from the same quarter last year.
Second quarter sales for fiscal 1999 were $1.84 billion compared to
$1.87 billion last year, a decrease of 1.6 percent. Excluding non-core
businesses sold prior to the second quarter of fiscal 1999, and Tyson de
Mexico, which was not consolidated in the second quarter of fiscal 1998,
comparable sales from continuing operations increased 1.5 percent over the
second quarter of 1998.
Gross profits for the second quarter of fiscal 1999 increased 19.9 percent
to $322.2 million from last year's $268.8 million. Gross margin overall
increased 313 basis points to 17.5 percent from last year's 14.4 percent. The
poultry gross margin for the second quarter of fiscal 1999, exclusive of Tyson
de Mexico, increased 527 basis points to 18.6 percent from 13.4 percent the
previous year mostly due to the impact of feed ingredients.
Diluted earnings per share for the first six months of fiscal 1999
increased 68 percent to $0.52 from $0.31 last year. Earnings increased
$52.2 million to $120.4 million for the first six months of fiscal 1999
compared to $68.2 million from the same period last year.
Sales for the first six months of fiscal 1999 were $3.67 billion compared
to $3.39 billion last year, an increase of 8.1 percent. The increase in sales
is primarily due to volume gained from the acquisition of Hudson Foods on
January 9, 1998, and the inclusion of Tyson de Mexico on a consolidated basis.
Gross profits for the first six months of fiscal 1999 increased
18.5 percent to $627.5 million from last year's $529.5 million. Gross margin
overall increased 151 basis points to 17.1 percent from last year's
15.6 percent. The poultry gross margin for the first six months of fiscal
1999, exclusive of Tyson de Mexico, increased 372 basis points to 18.5 percent
from 14.8 percent the same period last year.
Wayne Britt, Tyson's Chief Executive Officer, said, "I am pleased to see
our chicken business continue to experience fundamental improvements, although
the favorable costs of grain have been partially offset by the lower value for
leg quarters. Our results have been negatively affected by difficult
operating conditions experienced by our pork group, although industry
conditions show signs of improvement."
John Tyson, Chairman of the Board of Directors, said, "I am pleased with
the progress our management has made the last six months. We have aligned our
business units to better focus on our customers. Our people are adapting to
their new roles quickly and aggressively. Our focus is on increasing our
return on sales and maximizing our assets. I like what I see."
Tyson Foods, Inc. is the world's largest fully-integrated producer,
processor and marketer of chicken and poultry-based food products.
This press release contains forward-looking statements based on
management's current views and assumptions. Actual events may differ. Please
refer to the "Cautionary Statements Relevant to Forward-Looking Information"
on page 12 of the Company's 1998 Annual Report on Form 10-K for a discussion
of these matters.
The unaudited results are as follows: (In millions except per share data)
Three Months Ended April 3, 1999 March 28, 1998
Sales $1,841.3 $1,870.8
Cost of Sales 1,519.1 1,602.0
Gross Profit 322.2 268.8
Expenses:
Selling146.0 155.2
General and Administrative 33.1 33.6
Amortization 8.9 8.3
Operating Income 134.2 71.7
Other Expense (Income):
Interest 31.9 38.0
Foreign Currency Exchange (2.3) ---
Other 0.1 (3.2)
Income Before Taxes on Income and
Minority Interest 104.5 36.9
Provision for Income Taxes 37.0 13.6
Minority Interest 2.9 ---
Net Income $64.6 $23.3
Diluted Earnings Per Share $0.28 $0.10
Diluted Average Shares Outstanding 231.6 232.4
Dividends Per Share: Class A $0.0250 $0.0250
Class B $0.0225 $0.0225
Sales Growth (Decline) (1.6%) 18.8%
Margins: (Percent of Sales)
Gross Profit 17.5% 14.4%
Operating Income 7.3% 3.8%
Income Before Taxes on Income and
Minority Interest 5.7% 2.0%
Net Income 3.5% 1.2%
(In millions except per share data)
Six Months Ended April 3, 1999 March 28, 1998
Sales $3,666.0 $3,391.6
Cost of Sales 3,038.5 2,862.1
Gross Profit 627.5 529.5
Expenses:
Selling 291.7 280.8
General and Administrative 65.7 64.9
Amortization 17.5 14.2
Operating Income 252.6 169.6
Other Expense (Income):
Interest 63.2 65.2
Foreign Currency Exchange (4.0) ---
Other (2.7) (3.8)
Income Before Taxes on Income
and Minority Interest 196.1 108.2
Provision for Income Taxes 69.8 40.0
Minority Interest 5.9 ---
Net Income $120.4 $68.2
Diluted Earnings Per Share $0.52 $0.31
Diluted Average Shares Outstanding 231.9 223.4
Dividends Per Share: Class A $0.050 $0.050
Class B $0.045 $0.045
Sales Growth 8.1% 9.3%
Margins: (Percent of Sales)
Gross Profit 17.1% 15.6%
Operating Income 6.9% 5.0%
Income Before Taxes on Income and
Minority Interest 5.3% 3.2%
Net Income 3.3% 2.0%
CONSOLIDATED CONDENSED
BALANCE SHEETS
(In millions except per share amounts)
Assets April 3, 1999 October 3, 1998
Current Assets:
Cash and cash equivalents $48.1$46.5
Accounts receivable 634.9 631.0
Inventories 1,055.5 984.1
Assets held for sale 4.8 65.2
Other current assets 38.0 38.3
Total Current Assets 1,781.3 1,765.1
Net Property, Plant and Equipment 2,299.5 2,256.5
Excess of Investments over
Net Assets Acquired 1,036.4 1,035.8
Investments and Other Assets 215.5 185.1
Total Assets $5,332.7 $5,242.5
Liabilities and Shareholders' Equity
Current Liabilities:
Notes payable $67.6 $84.7
Current portion of long-term debt 223.6 77.6
Trade accounts payable 377.3 330.6
Other accrued liabilities 460.3 338.1
Total Current Liabilities 1,128.8 831.0
Long-Term Debt 1,724.3 1,966.6
Deferred Income Taxes 362.5 434.4
Other Liabilities 50.7 40.1
Shareholders' Equity:
Common stock ($.10 par value)
Class A-authorized 900 million shares:
Issued 137.9 million shares at 4-3-99 and
137.9 million shares at 10-3-98 13.8 13.8
Class B-authorized 900 million shares:
Issued 102.7 million shares at 4-3-99 and
102.7 million shares at 10-3-98 10.3 10.3
Capital in excess of par value 740.5 740.5
Retained earnings 1,503.6 1,394.2
Currency translation adjustment(1.8) (1.0)
2,266.4 2,157.8
Less class A treasury stock, at cost-
10.3 million shares at 4-3-99 and
9.7 million shares at 10-3-98 197.8 185.1
Less unamortized deferred compensation 2.2 2.3
Total Shareholders' Equity 2,066.4 1,970.4
Total Liabilities and
Shareholders' Equity $5,332.7 $5,242.5
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
For the Six Months Ended
(In millions)
April 3, 1999 March 28, 1998
Cash Flows from Operating Activities:
Net income $120.4 $68.2
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation 126.0 114.0
Amortization 17.5 14.2
Foreign currency exchange (4.0) ---
Deferred income taxes (71.9) (23.9)
(Gain) loss on dispositions of assets --- (4.0)
(Increase) decrease in
accounts receivable 10.7 (48.3)
Increase in inventories (71.4) (56.2)
Increase in trade accounts payable 46.7 1.6
Net change in other current assets and
oth 116.6 88.9
Cash Provided by Operating Activities 290.6 154.5
Cash Flows from Investing Activities:
Net cash paid for acquisitions --- (257.4)
Additions to property, plant and
equipment(179.2) (150.5)
Proceeds from disposition of assets 54.6 12.1
Net change in other assets and
liabilities (23.3) (23.1)
Cash Used for Investing Activities (147.9) (418.9)
Cash Flows from Financing Activities:
Net change in notes payable (17.1) (66.0)
Proceeds from long-term debt 73.5 780.2
Repayments of long-term debt (169.8) (419.6)
Purchases of treasury shares (14.1) (9.8)
Other (6.3) (9.4)
Cash (Used for) Provided by
Financing Activities (133.8) 275.4
Effect of Exchange Rate Change on Cash (7.3) (0.2)
Increase in Cash and Cash Equivalents 1.6 10.8
Cash and Cash Equivalents
at Beginning of Period 46.5 23.6
Cash and Cash Equivalents
at End of Period $48.1 $34.4
Financial information, such as this news release, as well as other
historical data and current Company information can now be accessed from the
Company's web site on the internet at tyson.com.
For a copy of this release, call fax-on-demand at 800-758-5804, ext.
113769.
SOURCE Tyson Foods, Inc.
-0- 05/03/99
/CONTACT: Louis Gottsponer of Tyson Foods, Inc., 501-290-4826/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 113769/
/Web site: tyson.com
(TSN)
CO: Tyson Foods, Inc.
ST: Arkansas
IN: FOD
SU: ERN
JP-LP
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