990513 Tyson Foods Reports 2nd Quarter Results

Springdale, AR - Tyson Foods, Inc. 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.

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