Tyson Reports Fourth Quarter and Fiscal Year 2012 Results
Nov 19, 2012 (Menafn - GlobeNewswire via COMTEX) --
--Fourth quarter 2012 reported EPS 0.51; adjusted1 EPS 0.55
--
Comparable fourth quarter 2011 reported and adjusted1 EPS 0.26
--
Overall fourth quarter operating margin was 4.0%
-- Repurchased
3.2 million shares for 50 million in fourth quarter
--Fiscal 2012 reported EPS 1.58; adjusted1 EPS 1.91
-- Comparable
fiscal 2011 reported EPS 1.97; adjusted1 EPS 1.89
-- Record sales
of 33 billion in fiscal 2012
-- Repurchased 12.5 million shares
for 230 million in fiscal 2012
--Liquidity totaled 2.0 billion at September 29, 2012
--Board declares 0.10 special dividend and a 25% increase on regular
dividend
1Adjusted EPS is explained and reconciled to comparable GAAP measure at the end of this release.
SPRINGDALE, Ark., Nov. 19, 2012 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. TSN, today reported the following results:
(in millions, except per share data)Fourth Quarter12 Months
----------------------------------------
2012201120122011
------------------------------------
Sales 8,373 8,404 33,278 32,266
Operating Income3321721,2481,285
Net Income18195576733
Less: Net Loss Attributable to
Noncontrolling Interest(4)(2)(7)(17)
------------------------------------
Net Income Attributable to Tyson 185 97 583 750
Reported Net Income Per Share
Attributable to Tyson 0.51 0.26 1.58 1.97
Adjusted1 Net Income Per Share
Attributable to Tyson 0.55 0.26 1.91 1.89
"Our earnings for the fourth quarter and fiscal year indicate that Tyson Foods is rising above the noise of commodity markets to produce solid, more consistent results," said Donnie Smith, Tyson's president and chief executive officer. "It has taken us several years and a lot of work to get to this point, and although there is much more to be done, I believe we have reached a new level of sustainable performance.
"While fiscal 2012 wasn't a record EPS year, I think it was our best year - certainly our best effort to date. Our team members didn't make excuses; they made a difference, and they made money. This allowed us to buy back stock throughout the year, including 50 million in the fourth quarter, and to reinvest in our business at a record level while strengthening our balance sheet. Our strong balance sheet, liquidity position and a desire to return cash to shareholders led the Board of Directors to declare a special dividend and to increase the regular dividend by 25%. The Board's action is reflective of our increased profitability and the investments we've made in the company.
"Our accomplishments, reinvestment in our business and record sales in fiscal 2012 were achieved in difficult market conditions. Fiscal 2013 is likely to be equally if not more difficult, but there will always be challenging circumstances in this business. It's our job to accelerate growth by focusing on innovation, serving our customers and developing our team members, whatever the market conditions may be. While we're proud of what we've accomplished, we now have higher expectations, and maintaining the status quo is not an option. We will adapt, we will evolve and we will grow."
Segment Performance Review (in millions)
Sales
(for the fourth quarter and 12 months ended September 29, 2012, and October 1, 2011)
----------------------------------------------------------------------------------------------
Fourth Quarter12 Months
------------------------------------------------------------------------------
Avg.Avg.
VolumePriceVolumePrice
20122011ChangeChange20122011ChangeChange
------------------------------------------------------------------
Chicken 3,016 2,859(3.5)%9.4%11,591 11,017(3.6)%9.2%
Beef3,4323,516(12.5)%11.6%13,755
-------13,549(11.3)%14.4%
Pork1,3191,4305.0%(12.2)%5,510
-------5,4602.4%(1.5)%
Prepared
Foods805827--(2.6)%3,237
-------3,215(0.9)%1.6%
Other4364n/an/a167
-------127n/an/a
Intersegment
Sales(242)(292)n/an/a(982)(1,102)n/an/a
------------------------------------------------------------------
Total 8,373 8,404(3.9)%4.0%33,278 32,266(4.3)%7.7%
------------------------------------------------------------------
Operating Income (Loss)
(for the fourth quarter and 12 months ended September 29, 2012, and October 1, 2011)
----------------------------------------------------------------------------------------------
Fourth Quarter12 Months
------------------------------------------------------------------------------
Operating MarginOperating Margin
-----------------------------------
20122011201220112012201120122011
------------------------------------------------------------------
Chicken 116 (82)3.8%(2.9)%446 1643.8%1.5%
Beef1171183.4%3.4%218
-------4681.6%3.5%
Pork681135.2%7.9%417
-------5607.6%10.3%
Prepared
Foods39284.8%3.4%181
-------1175.6%3.6%
Other(8)(5)n/an/a(14)(24)n/an/a
------------------------------------------------------------------
Total 332 1724.0%2.0%1,248 1,2853.8%4.0%
------------------------------------------------------------------
Outlook
Our continued capital investment in our businesses, strong liquidity and reduced interest expense has put us in a strong position as we begin a challenging fiscal 2013. The drought conditions in the summer of 2012 reduced grain supplies, which will result in higher input costs as well as increased costs for cattle and hog producers. USDA data indicates in fiscal 2013 overall domestic protein production (chicken, beef, pork and turkey) is expected to decrease 2% compared to fiscal 2012, which should continue to support improved pricing. The following is a summary of the fiscal 2013 outlook for each of our segments, as well as an outlook on sales, capital expenditures, net interest expense, debt and liquidity, share repurchases and dividends:
--Chicken - Current USDA data shows U.S. chicken production will be down
slightly in fiscal 2013. Due to the reduced crop supply, we expect
higher grain costs in fiscal 2013 compared to fiscal 2012 of
approximately 600 million. However, the capital investment and
significant operational, mix and pricing improvements we have made in
our Chicken segment have better positioned us to adapt to rising grain
prices. For fiscal 2013, we anticipate our Chicken segment will remain
profitable, but could be below our normalized range of 5.0%-7.0%.
--Beef - We expect to see a reduction of industry fed cattle supplies of
2-3% in fiscal 2013 as compared to fiscal 2012. Although we generally
expect adequate supplies in regions we operate our plants, there may be
periods of imbalance of fed cattle supply and demand. We anticipate beef
exports will remain strong. For fiscal 2013, we believe our Beef segment
will remain profitable, but could be below our normalized range of
2.5%-4.5%.
--Pork - We expect industry hog supplies in fiscal 2013 to be flat
compared to fiscal 2012 and pork exports to remain strong. For fiscal
2013, we believe our Pork segment will be in or above our normalized
range of 6.0%-8.0%.
--Prepared Foods - We expect operational improvements and increased
pricing to offset increased raw material costs. Because many of our
sales contracts are formula based or shorter-term in nature, we are
typically able to offset rising input costs through increased pricing.
For fiscal 2013, we believe our Prepared Foods segment will remain in
its normalized range of 4.0%-6.0%.
--Sales - We expect fiscal 2013 sales to increase to approximately 35
billion mostly resulting from price increases related to decreases in
domestic availability of protein and rising raw material costs.
--Capital Expenditures - Our preliminary capital expenditures plan for
fiscal 2013 is approximately 550 million. The reduction in planned
capital expenditures from fiscal 2012 is primarily a result of an
anticipated rise in working capital needs in fiscal 2013. Once we gain
more visibility into our working capital needs, or should forecasted
conditions change, we may raise our capital expenditures target. We will
continue to make significant investments in our production facilities
for high return operational efficiencies, other profit improvement
projects and development of our foreign operations.
--Net Interest Expense - We expect fiscal 2013 net interest expense will
approximate 140 million.
--Debt and Liquidity - We do not have any significant maturities of debt
due until October 2013. We may use our available cash to repurchase
notes when available at attractive rates. Total liquidity at September
29, 2012, was 2.0 billion, well above our goal to maintain liquidity in
excess of 1.2 billion.
--Share Repurchases - We expect to continue repurchasing shares under our
share repurchase plan. In fiscal 2012, we repurchased 12.5 million
shares for approximately 230 million. As of September 29, 2012, 35.2
million shares remain authorized for repurchases. The timing and extent
to which we repurchase shares will depend upon, among other things, our
working capital needs, market conditions, liquidity targets, our debt
obligations and regulatory requirements.
--Dividends - On November 15, 2012, the Board of Directors declared a
special dividend of 0.10 per share on our Class A common stock and
0.09 per share on our Class B common stock. Additionally, the Board
increased the quarterly dividend previously declared on August 3, 2012,
to 0.05 per share on our Class A common stock and 0.045 per share on
our Class B common stock. Both the special dividend and the increased
quarterly dividend are payable on December 14, 2012, to shareholders of
record at the close of business on November 30, 2012. The Board also
declared a quarterly dividend of 0.05 per share on our Class A common
stock and 0.045 per share on our Class B common stock, payable on March
31, 2013, to shareholders of record at the close of business on March 1,
2013.
Segment Performance Review
Chicken Segment Results
in millionsThree Months Ended12 Months Ended
-------------------------------------------------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 2011Change29, 20121, 2011Change
-----------------------------------------------------------------------
Sales 3,016 2,859 157 11,591 11,017 574
Sales Volume Change(3.5)%(3.6)%
Average Sales Price
Change9.4%9.2%
Operating Income 116 (82) 198 446 164 282
Operating Margin3.8%(2.9)%3.8%1.5%
-----------------------------------------------------------------------
Fourth quarter and 12 months of fiscal 2012
--Included a non-cash impairment charge of 15 million related to non-core
assets in China
Fourth quarter and 12 months -- Fiscal 2012 vs Fiscal 2011
--Sales and Operating Income --
--Sales Volume -- The decrease in sales volumes in the fourth quarter and
12 months of fiscal 2012 was largely due to the impact of domestic
production cuts we made in late fiscal 2011 and maintained throughout
fiscal 2012, in order to balance our supply with forecasted customer
demand. For the 12 months, these production cuts reduced our total
domestic slaughter pounds by approximately 4%. The decrease in domestic
slaughter pounds was partially offset by increases in international
sales volumes and open-market meat purchases.
--Average Sales Price -- The increase in average sales price is primarily
due to mix changes and price increases associated with reduced industry
supply and increased input costs.
--Operating Income -- Operating income was positively impacted by
increases in average sales price, improved mix and operational
improvements. These increases were partially offset by increased grain
and feed ingredients costs of 30 million and 320 million for the
fourth quarter and 12 months of fiscal 2012, respectively. Increases in
other growout operating costs of 50 million also negatively impacted
operating income for the 12 months of fiscal 2012. Additionally, our
foreign start-up businesses in Brazil and China incurred operating
losses of approximately 45 million and 105 million for the fourth
quarter and 12 months of fiscal 2012, respectively, which included 15
million for the impairment of non-core assets.
--Derivative Activities -- Operating results included the following
amounts for commodity risk management activities related to grain and
energy purchases. These amounts exclude the impact from related physical
purchase transactions, which impact current and future period operating
results.
Income/(Loss) - in millionsQtrYTD
-------------
2012 (3) (25)
2011(31)41
-------------
Improvement/(Decline) in operating results 28 (66)
Beef Segment Results
in millionsThree Months Ended12 Months Ended
----------------------------------------------------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 2011Change29, 20121, 2011Change
--------------------------------------------------------------------------
Sales 3,432 3,516 (84) 13,755 13,549 206
Sales Volume Change(12.5)%(11.3)%
Average Sales Price
Change11.6%14.4%
Operating Income 117 118 (1) 218 468 (250)
Operating Margin3.4%3.4%1.6%3.5%
--------------------------------------------------------------------------
Fourth quarter and 12 months -- Fiscal 2012 vs Fiscal 2011
--Sales and Operating Income --
--Average sales price increased for the fourth quarter and 12 months of
fiscal 2012 due to price increases associated with increased livestock
costs. Sales volume decreased for the fourth quarter and 12 months of
fiscal 2012 due to reductions in live cattle processed and outside
tallow purchases. Operating income decreased for the 12 months of fiscal
2012 due to higher fed cattle costs and periods of reduced demand for
beef products, which made it difficult to pass along increased input
costs, as well as lower sales volumes and increased employee related
operating costs.
--Derivative Activities -- Operating results included the following
amounts for commodity risk management activities related to forward
futures contracts for live cattle. These amounts exclude the impact from
related physical sale and purchase transactions, which impact current
and future period operating results.
Income/(Loss) - in millionsQtrYTD
----------
2012 10 31
2011(1)(41)
----------
Improvement in operating results 11 72
Pork Segment Results
in millionsThree Months Ended12 Months Ended
----------------------------------------------------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 2011Change29, 20121, 2011Change
--------------------------------------------------------------------------
Sales 1,319 1,430 (111) 5,510 5,460 50
Sales Volume Change5.0%2.4%
Average Sales Price
Change(12.2)%(1.5)%
Operating Income 68 113 (45) 417 560 (143)
Operating Margin5.2%7.9%7.6%10.3%
--------------------------------------------------------------------------
Fourth quarter and 12 months -- Fiscal 2012 vs Fiscal 2011
--Sales and Operating Income --
--Average sales price decreased for the fourth quarter and 12 months of
fiscal 2012 due to increased domestic availability of pork products,
which drove lower live hog costs. Operating income decreased in the
fourth quarter and 12 months of fiscal 2012 due to compressed pork
margins caused by the excess domestic availability of pork products. We
were able to maintain strong operating margins for the 12 months of
fiscal 2012 by maximizing our revenues relative to the live hog markets,
partially due to strong export sales and operational and mix
performance.
--Derivative Activities -- Operating results included the following
amounts for commodity risk management activities related to forward
futures contracts for live hogs. These amounts exclude the impact from
related physical sale and purchase transactions, which impact current
and future period operating results.
Income/(Loss) - in millionsQtrYTD
----------
2012 15 66
2011(17)(32)
----------
Improvement in operating results 32 98
Prepared Foods Segment Results
in millionsThree Months Ended12 Months Ended
------------------------------------------------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 2011Change29, 20121, 2011Change
----------------------------------------------------------------------
Sales 805 827 (22) 3,237 3,215 22
Sales Volume Change--%(0.9)%
Average Sales Price
Change(2.6)%1.6%
Operating Income 39 28 11 181 117 64
Operating Margin4.8%3.4%5.6%3.6%
----------------------------------------------------------------------
Fourth quarter -- Fiscal 2012 vs Fiscal 2011
--Sales and Operating Income -- Operating margins were positively
impacted by lower raw material costs, which were partially offset by a
decrease in average sales prices.
12 months -- Fiscal 2012 vs Fiscal 2011
--Sales and Operating Income -- Operating margins were positively impacted
by lower raw material costs of 75 million and increased average sales
prices, which were partially offset by lower volumes and increased
operational costs of approximately 30 million, largely due to costs
related to revamping our lunchmeat business and the start-up of a new
pepperoni plant. Because many of our sales contracts are formula based
or shorter-term in nature, we typically offset changing input costs
through pricing. However, there is a lag time for price changes to take
effect, which is what we experienced during fiscal 2011.
TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended12 Months Ended
---------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 201129, 20121, 2011
-----------------------------------
Sales 8,373 8,404 33,278 32,266
Cost of Sales7,8038,01331,11830,067
-----------------------------------
Gross Profit5703912,1602,199
Selling, General and
Administrative238219912914
-----------------------------------
Operating Income3321721,2481,285
Other (Income)
Expense:
Interest income(3)(3)(12)(11)
Interest expense4055356242
Other, net(6)(5)(23)(20)
-----------------------------------
Total Other (Income)
Expense3147321211
-----------------------------------
Income before Income
Taxes3011259271,074
Income Tax Expense12030351341
-----------------------------------
Net Income18195576733
Less: Net Loss
Attributable to
Noncontrolling
Interest(4)(2)(7)(17)
-----------------------------------
Net Income
Attributable to
Tyson 185 97 583 750
===================================
Weighted Average
Shares Outstanding:
Class A Basic288299293303
Class B Basic70707070
Diluted363375370380
Net Income Per Share
Attributable to
Tyson:
Class A Basic 0.53 0.27 1.64 2.04
Class B Basic 0.48 0.24 1.48 1.84
Diluted 0.51 0.26 1.58 1.97
Cash Dividends Per
Share:
Class A 0.040 0.040 0.160 0.160
Class B 0.036 0.036 0.144 0.144
Sales Growth(0.4)%3.1%
Margins: (Percent of
Sales)
Gross Profit6.8%4.7%6.5%6.8%
Operating Income4.0%2.0%3.8%4.0%
Net Income2.2%1.1%1.7%2.3%
Effective Tax Rate39.9%24.1%37.9%31.8%
TYSON FOODS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
(Unaudited)
SeptemberOctober
29, 20121, 2011
------------------
Assets
Current Assets:
Cash and cash
equivalents 1,071 716
Accounts receivable, net1,3781,321
Inventories2,8092,587
Other current assets145156
------------------
Total Current Assets5,4034,780
Net Property, Plant and
Equipment4,0223,823
Goodwill1,8911,892
Intangible Assets129149
Other Assets451427
------------------
Total Assets 11,896 11,071
==================
Liabilities and
Shareholders' Equity
Current Liabilities:
Current debt 515 70
Accounts payable1,3721,264
Other current
liabilities9431,040
------------------
Total Current Liabilities2,8302,374
Long-Term Debt1,9172,112
Deferred Income Taxes558424
Other Liabilities549476
Total Tyson Shareholders'
Equity6,0125,657
Noncontrolling Interest3028
------------------
Total Shareholders'
Equity6,0425,685
------------------
Total Liabilities and
Shareholders' Equity 11,896 11,071
==================
TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
12 Months Ended
------------------
SeptemberOctober
29, 20121, 2011
----------------
Cash Flows From Operating Activities:
Net income 576 733
Depreciation and amortization499506
Deferred income taxes14086
Loss on early extinguishment of debt167--
Other, net5267
Net change in other current assets and
liabilities(247)(346)
----------------
Cash Provided by Operating Activities1,1871,046
----------------
Cash Flows From Investing Activities:
Additions to property, plant and
equipment(690)(643)
Purchases of marketable securities(58)(146)
Proceeds from sale of marketable
securities4766
Proceeds from notes receivable--51
Other, net4128
----------------
Cash Used for Investing Activities(660)(644)
----------------
Cash Flows From Financing Activities:
Payments on debt(993)(500)
Net proceeds from borrowings1,116115
Purchase of redeemable noncontrolling
interest--(66)
Purchases of Tyson Class A common stock(264)(207)
Dividends(57)(59)
Other, net2759
----------------
Cash Used for Financing Activities(171)(658)
----------------
Effect of Exchange Rate Change on Cash(1)(6)
----------------
Increase (Decrease) in Cash and Cash
Equivalents355(262)
Cash and Cash Equivalents at Beginning of
Year716978
----------------
Cash and Cash Equivalents at End of
Period 1,071 716
================
TYSON FOODS, INC.
EPS Reconciliations
(Unaudited)
Three Months Ended12 Months Ended
------------------------------------
SeptemberOctoberSeptemberOctober
29, 20121, 201129, 20121, 2011
--------------------------------
Reported net income per share attributable to Tyson 0.51 0.26 1.58 1.97
Less: 11 million gain on sale of interests in an equity
method investment------(0.03)
Less: 21 million reversal of reserves for foreign
uncertain tax positions------(0.05)
Add: 167 million loss on early extinguishment of debt----0.29--
Add: 15 million impairment of non-core assets in China0.04--0.04--
--------------------------------
Adjusted net income per share attributable to Tyson 0.55 0.26 1.91 1.89
Adjusted net income per share attributable to Tyson (adjusted EPS) is presented as a supplementary financial measurement in the evaluation of our business. We believe the presentation of adjusted EPS helps investors to assess our financial performance from period to period and enhances understanding of our financial performance. However, adjusted EPS may not be comparable to those of other companies in our industry, which limits its usefulness as a comparative measure. Adjusted EPS is not a measure required by or calculated in accordance with GAAP and should not be considered as a substitute for any measure of financial performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results, and use non-GAAP financial measures only supplementally, in making investment decisions.
TYSON FOODS, INC.
EBITDA Reconciliations
(In millions)
(Unaudited)
12 Months Ended
-------------------
SeptemberOctober
29, 20121, 2011
-----------------
Net income 576 733
Less: Interest income(12)(11)
Add: Interest expense356242
Add: Income tax
expense351341
Add: Depreciation443433
Add: Amortization (a)1729
-----------------
EBITDA 1,731 1,767
Total gross debt 2,432 2,182
Less: Cash and cash
equivalents(1,071)(716)
Total net debt 1,361 1,466
Ratio Calculations:
Gross debt/EBITDA1.4x1.2x
Net debt/EBITDA0.8x0.8x
(a)Excludes the amortization of debt
discount expense of 39 million and 44
million for the 12 months ended
September 29, 2012, and October 1, 2011,
respectively, as it is included in
Interest expense.
EBITDA represents net income, net of interest, income tax and depreciation and amortization. EBITDA is presented as a supplemental financial measurement in the evaluation of our business. We believe the presentation of this financial measure helps investors to assess our operating performance from period to period and enhances understanding of our financial performance and highlights operational trends. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies. However, the measurement of EBITDA may not be comparable to those of other companies in our industry, which limits its usefulness as a comparative measure. EBITDA is not a measure required by or calculated in accordance with GAAP and should not be considered as a substitute for net income or any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity. EBITDA is a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain of the items added to net income to determine EBITDA involve outlays of cash. As a result, actual cash available to service our debt obligations will be different from EBITDA. Investors should rely primarily on our GAAP results, and use non-GAAP financial measures only supplementally, in making investment decisions.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and approximately 130 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3224
A conference call to discuss the Company's financial results will be held at 9 a.m. Eastern Monday, November 19, 2012. To listen live via telephone, call 888-455-8283. International callers dial 210-839-8865. The pass code "Tyson Foods" will be required to join the call. A telephone replay will be available until December 21, 2012, at 800-238-0581. International callers may access the replay at 402-220-9694. The live webcast, as well as the replay, will be available on the Internet at http://ir.tyson.com. Financial information, such as this news release, as well as other supplemental data, including Company distribution channel information, can be accessed from the Company's web site at http://ir.tyson.com.
Forward-Looking Statements
Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected performance, and including, but not limited to, statements appearing in the "Outlook" section. These forward-looking statements are subject to a number of factors and uncertainties which could cause our actual results and experiences to differ materially from the anticipated results and expectations expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the effect of, or changes in, general economic conditions; (ii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (iii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (iv) successful rationalization of existing facilities and operating efficiencies of the facilities; (v) risks associated with our commodity purchasing activities; (vi) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (vii) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (viii) changes in availability and relative costs of labor and contract growers and our ability to maintain good relationships with employees, labor unions, contract growers and independent producers providing us livestock; (ix) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (x) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xi) significant marketing plan changes by large customers or loss of one or more large customers; (xii) adverse results from litigation; (xiii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xiv) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xv) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (xvi) effectiveness of advertising and marketing programs; and (xvii) those factors listed under Item 1A. "Risk Factors" included in our September 29, 2012, Annual Report filed on Form 10-K.
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SOURCE: Tyson Foods, Inc.
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CONTACT: Media Contact:Gary Mickelson, 479-290-6111
Investor Contact:Jon Kathol, 479-290-4235
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