Springdale, Ark. - Tyson Foods Inc., producer of poultry food products, said it was studying a restructuring that could lead to fourth-quarter aggregate charges of $200 million on a pre-tax basis.
The company said in a statement it will consider closing plants, reducing its work force and writing down goodwill allocated to certain facilities that may be closed.
The company also said it plans to divest non-core businesses whose financial results do not meet management expectations.
The proposed restructuring would enable the company to focus on its core business of chicken, Tyson said.
The restructuring's exact size and scope have not yet been fully determined, it said.
Tyson said it expects to finish the study in time to submit it to the board of directors during the regular fourth quarter meeting.
The announcement came as the company reported fiscal third-quarter net income rose to $46.6 million from $45.2 million a year earlier.
The company said its acquisition of Hudson Foods Inc. in January has permitted it to review its productive capabilities and the cost structure of its core business.
"These actions are designed to streamline the company's production base, improve overall operating efficiencies and competitiveness, and further focus company operations on its core business, all with a view toward creating long- term shareholder value," said Leland Tollett, chairman and chief executive officer.
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