050705 Tyson Foods Sees $43M in Q3 ChargesJuly 19, 2005Springdale, AR - Tyson Foods Inc. said third-quarter earnings will be hit by $43 million in charges linked to a legal settlement and a plan to streamline its poultry operations. The company agreed to pay $42.5 million to settle a 2002 lawsuit regarding its live swine operations. The litigation -- which claimed Tyson improperly failed to renew contracts with contractors -- will cause a charge of $33 million, or 6 cents per share, during the quarter. Meanwhile, the company said it will take a $10 million, or 2 cent per share, charge as part of an effort to restructure its poultry operations. The plan calls for the closure of its Bentonville, Ark., plant -- and an expansion of plants in Russellville, Ark., and Forest, Miss. "These are major projects we believe will contribute to our goals to increase value-added product sales and streamline our ability to produce and deliver the high quality products our customers have come to expect," said Bill Lovette, group vice president of food service. Tyson said it will "work closely" with the 320 Bentonville plant workers to find them other jobs within the company. On average, analysts surveyed by Thomson Financial expect Tyson Foods to report third-quarter profit of 41 cents per share on revenue of $7.13 billion.
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