051147 Tyson Expects Japan to Resume Beef Imports Soon

Springdale, AR - Tyson Foods Inc. expects Japan to resume allowing limited imports of U.S. beef by the end of the year.

Japan closed its market to U.S. beef at the beginning of the mad cow disease scare in December 2003.

As accommodations to the U.S. beef industry move through the Japanese bureaucracy, late 2005 has been the mostly commonly identified time for a resumption of beef trade, at least for animals no older than 20 months. Mad cow disease is not believed to afflict animals that young.

Tyson has as much at stake in exporting beef as any company, and it lowered its earnings estimates for 2006 on Monday in part because of beef market conditions.

Nebraskans have a big stake in Tyson. The company’s properties in Nebraska include offices, plants, warehouses, tanneries and other operations in Columbus, Dakota City, Lexington, Madison, Norfolk, Omaha, West Point and York.

In a conference call to discuss Tyson’s latest earnings, Chairman John Tyson and chief operating officer Greg Lee said Japan likely will reopen its borders to U.S. beef by late this year.

"On the Asian front, it appears we could see limited access to our Japanese market by late December,” said Tyson. “However, we believe, based on the 20 months of age verification processes required to export to Japan, sales will be limited. More significant sales to South Korea and other Asian countries on a 30- month age basis could begin in late February or March."

Lee said Japan’s allowing U.S. beef imports likely would reopen borders to South Korea, Taiwan and HongKong.

U.S. senators are threatening unspecified trade retaliation against Japan if it doesn’t open the beef market by the end of the year.

In its other news on Monday, Tyson said it earned $98 million, or 28 cents per share, for the three months ended Oct. 1 versus a year-earlier profit of $66 million, or 19 cents per share.

Tyson earned $98 million, or 28 cents per share, for the three months ended Oct. 1 versus a year-earlier profit of $66 million, or 19 cents per share.

The latest quarter's results included a nonrecurring income tax net benefit of $15 million, and $8 million in pretax losses it sustained from Hurricane Katrina. Those items added 3 cents per share to its profit, the company said.

Analysts expected $0.30 per share.

Tyson also forecast fiscal 2006 earnings between 95 cents and $1.25 per share, lower than analysts’ consensus of $1.33 per share. The company said it expects to record more costs from Hurricane Katrina in the first quarter and pledged to continue capital improvements.

“I think this has been the kind of year that shows you how important it is to have a sound strategy and stay focused on it,” Tyson said.

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