021206 Tyson Lowers Estimate; Closing Two Plants

Springdale, AR - Tyson Foods Inc. lowered its fiscal first-quarter earnings estimate and said it will close two poultry operations.

The chicken, beef and pork producer said it expects first-quarter earnings of 14 cents to 18 cents a share, excluding charges. Tyson previously expected earnings of 22 cents to 26 cents a share. The mean estimate of analysts surveyed by Thomson First Call is for earnings of 24 cents a share.

The company expects pretax charges of $60 million to $70 million, or 11 cents to 13 cents a share, for the period ending Dec. 28, for the facility closings.

Tyson said market conditions "continue to be challenging going into the holidays, especially in beef processing."

Tyson expects 2003 earnings excluding charges of $1 to $1.10 a share, compared with a previous outlook of $1.05 to $1.15 a share. The mean estimate of analysts surveyed by Thomson First Call is for earnings of $1.10.

Tyson will close poultry operations in Stilwell, Okla., and Jacksonville, Fla.

The Stilwell facility, with about 400 employees, produces boneless leg meat. The Jacksonville operation employs about 550 people and includes a hatchery, feed mill, live production and processing facility.

The company is also considering the sale of a Berlin, Md., poultry operation. Allen Family Foods Inc., a Delaware company, is considering buying the facility, which has about 650 workers.

Employees will have opportunities to transfer to other Tyson locations, the company said.

Tyson will also eliminate about 650 general and administrative and shared services positions over the next two years. Many of the jobs will be reduced through normal attrition and turnover.

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