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TSN · Tyson Foods

32 filings

10-K

TSN 10-K Annual Reports

Tyson Foods - 32 annual reports

Filing record · 2016–202610-K1110-Q338-K142

2025
Tyson Foods Annual Report, Year Ended Sep 27, 2025
Tyson Foods, Inc. reported fiscal 2025 (52 weeks ended September 27, 2025) sales of $54.44 billion, up from $53.31 billion, with sales growth driven mainly by higher average sales prices in the Beef, Pork and Prepared Foods segments, partially offset by $653 million of increased legal contingency accruals that reduced sales. Operating income fell to $1,098 million from $1,409 million, as lower results in Beef and Pork, including a $343 million goodwill impairment in Beef and $738 million of legal contingency accruals, outweighed improved results in Chicken and Prepared Foods. Net income attributable to Tyson was $474 million, or $1.33 per diluted share, versus $800 million, or $2.25 per diluted share, in fiscal 2024. Beef reported an operating loss of $1,135 million, and Pork an operating loss of $199 million, while Chicken operating income rose to $1,427 million. Cash provided by operating activities was $2.16 billion, down from $2.59 billion, and capital expenditures were $978 million. Cash and cash equivalents ended the year at $1.23 billion, and total debt was $8.83 billion. The net debt to EBITDA ratio rose to 3.0x from 2.8x, and the company reported total liquidity of $3.73 billion. The company said it expects fiscal 2026 capital expenditures of $0.7 billion to $1.0 billion and a quarterly Class A dividend of $0.51 per share from the December 2025 payment onward, an annual rate of $2.04. The filing highlights ongoing exposure to antitrust and wage-related litigation, including a pending Oklahoma environmental case seeking remedies, and to commodity cost volatility, particularly cattle. The Tyson Limited Partnership controls approximately 71.94% of total voting power, and the company's auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Nov 10, 2025
2024
Tyson Foods Annual Report, Year Ended Sep 28, 2024
Tyson Foods, Inc. (NYSE: TSN), a protein company headquartered in Springdale, Arkansas, reported fiscal 2024 (ended September 28, 2024) sales of $53.3 billion versus $52.9 billion in fiscal 2023, with operating income of $1,409 million compared with an operating loss of $395 million a year earlier. The improvement was driven by higher operating income in every segment other than Beef, which posted an operating loss of $381 million amid higher cattle costs and a legal contingency accrual. Net income attributable to Tyson was $800 million, or $2.25 per diluted share, against a loss of $648 million in fiscal 2023, which included a $781 million goodwill impairment. Fiscal 2024 results also absorbed $182 million of plant closure and disposal charges and $174 million of legal contingency accruals. Cash flow from operations rose to $2,590 million from $1,752 million, and capital expenditures fell to $1,132 million from $1,939 million. Net debt to EBITDA improved to 2.8x from 9.1x, with total liquidity of $3,977 million at year end. The company expects fiscal 2025 capital expenditures of $1.0 billion to $1.2 billion and net interest expense of approximately $380 million. Walmart Inc. accounted for 18.4% of fiscal 2024 consolidated sales. The Tyson Limited Partnership controls approximately 71.70% of total voting power, and the Board raised the quarterly dividend to $0.50 per Class A share effective November 8, 2024.
Nov 12, 2024
2023
Tyson Foods Annual Report, Year Ended Sep 30, 2023
Tyson Foods, Inc. reported a fiscal 2023 net loss attributable to Tyson of $648 million, or $(1.87) per diluted share, compared with net income of $3,238 million in fiscal 2022. Sales decreased slightly to $52,881 million from $53,282 million, while the company recorded an operating loss of $395 million versus operating income of $4,410 million the prior year. The results were driven largely by a $781 million goodwill impairment charge, $322 million of plant closure charges, $156 million of legal contingency accruals, and $124 million of restructuring and related charges, along with lower operating income in every segment except Prepared Foods. Segment operating results were Beef $(91) million, Pork $(139) million, Chicken $(770) million, and Prepared Foods $823 million. Balance sheet and liquidity metrics weakened during the year. Cash and cash equivalents fell to $573 million from $1,031 million, current debt rose to $1,895 million, and the net debt to EBITDA ratio increased to 9.1x from 1.3x. The company stated it had $3.0 billion of liquidity at September 30, 2023, and that it was in compliance with all debt covenants. Cash provided by operating activities declined to $1,752 million from $2,687 million, and capital expenditures were $1,939 million. The company expects fiscal 2024 capital expenditures between $1 billion and $1.5 billion and net interest expense of approximately $400 million. For shareholders, the Board increased the quarterly dividend to $0.49 per Class A share effective November 10, 2023, and the company noted it has paid uninterrupted quarterly dividends since 1977. The filing also discloses ongoing antitrust and wage-related litigation, including an Oklahoma environmental case where the parties were unable to reach a resolution at mediation, and a $488 million Mexican tax assessment that the company believes has no merit and for which it has not recorded a liability.
Nov 13, 2023
2022
Tyson Foods Annual Report, Year Ended Oct 1, 2022
Tyson Foods, Inc. (NYSE: TSN) reported fiscal 2022 (52 weeks ended October 1, 2022) with sales of $53.28 billion, up from $47.05 billion in fiscal 2021, driven mainly by higher average sales prices amid inflation. Operating income was $4.41 billion, roughly flat versus $4.40 billion in fiscal 2021, as Chicken results improved while Beef, Pork and Prepared Foods declined. Net income attributable to Tyson was $3.24 billion, or $8.92 per diluted share, compared with $3.05 billion, or $8.34 per diluted share, in fiscal 2021. Fiscal 2021 included a $626 million legal contingency charge and a $784 million gain on the sale of the pet treats business, so the year-over-year comparison is affected by these items. The balance sheet shows $1.03 billion of cash, $3.3 billion of total liquidity, total debt of $8.32 billion and a net debt to EBITDA ratio of 1.3x. The company reported $2.69 billion of operating cash flow and $1.89 billion of capital expenditures, leaving operating cash outflows from working capital changes. Management expects fiscal 2023 capital spending of about $2.5 billion and a net cash outflow from operating assets and liabilities. The company also launched a restructuring program (the 2022 Program) with estimated cumulative pretax charges of $293 million, and a productivity program targeting $1 billion in savings by fiscal 2024, with more than $700 million realized in fiscal 2022. Key risks disclosed include Walmart's 17.7% share of fiscal 2022 sales, control by the Tyson Limited Partnership (about 71.15% of voting power), livestock disease, feed and commodity price volatility, and numerous antitrust and wage-rate lawsuits. A Mexican tax assessment of approximately $411 million is under appeal, with no liability recorded.
Nov 14, 2022
2021
Tyson Foods Annual Report, Year Ended Oct 2, 2021
Tyson Foods, Inc. (NYSE: TSN) reported fiscal 2021 (year ended October 2, 2021) with sales of $47.0 billion, up 9% from $43.2 billion in fiscal 2020, driven mainly by a 13.0% increase in average sales price, partially offset by a 2.8% decline in sales volume. Operating income rose to $4.40 billion from $3.01 billion, and net income attributable to Tyson was $3.05 billion, or $8.34 per diluted share, versus $5.64 in fiscal 2020. Results were shaped by large items: $626 million of legal contingency accruals (mainly broiler antitrust and wage rate litigation) and a $784 million pretax gain on the sale of the pet treats business. Segment performance was uneven. Beef operating income rose to $3.24 billion (18.0% margin) and Prepared Foods to $1.46 billion (16.4%), while Chicken swung to an operating loss of $625 million (a -4.6% margin) and Pork margin fell to 5.2%. Cash generation and balance sheet strength improved. Operating cash flow was $3.84 billion, and cash and cash equivalents were $2.51 billion at year-end. Total debt fell to $9.35 billion from $11.34 billion, and net debt to EBITDA improved to 1.2x from 2.3x. The company had $4.8 billion of liquidity and a $2.25 billion revolving credit facility, and it expects fiscal 2022 capital spending of about $2 billion. Management is launching a productivity program targeting $1 billion in savings by fiscal 2024 relative to a fiscal 2021 cost baseline, and it raised the quarterly dividend to $0.46 per Class A share. Investors should also note governance and risk factors. The Tyson Limited Partnership controls approximately 71.04% of total voting power, and Walmart Inc. accounted for 18.3% of fiscal 2021 consolidated sales. Goodwill and indefinite-life intangibles totaled $14.6 billion, about 40% of total assets, and the Chicken segment's goodwill passed impairment testing only under normalized margin assumptions. COVID-19 related direct incremental expenses were approximately $335 million in fiscal 2021.
Nov 15, 2021
2020-A
Tyson Foods Annual Report (Amendment), Year Ended Oct 3, 2020
Tyson Foods, Inc. filed this Amendment on Form 10-K/A to restate Items 6, 7, 8 and 9A of its fiscal 2020 annual report (year ended October 3, 2020). The restatement corrects an overstatement of live cattle inventory caused by misappropriation of Company funds by one cattle supplier, which made misrepresentations about the number of cattle it purchased for the Beef segment. The misstatement covered fiscal years 2017 through 2020 and is isolated to the Beef segment. The Company revised inventory down by $285 million as of October 3, 2020 and by $179 million as of September 28, 2019, and increased selling, general and administrative expense by $106 million for fiscal 2020. Revised fiscal 2020 net income attributable to Tyson is $2,061 million, compared with $2,140 million as originally reported, and diluted net income per share is $5.64, compared with $5.86 as originally reported. Management now concludes that internal control over financial reporting was not effective as of October 3, 2020, because of a material weakness in controls over the existence of live cattle inventory. Disclosure controls were also concluded to be not effective for the same reason. The Company describes remediation steps, including physical verification of live cattle on third-party feedyards and training on the reconciliation and review control. PricewaterhouseCoopers LLP's report was updated to reflect the restatement and an adverse opinion on internal control. Underlying operations reported in the filing include sales of $43.2 billion, operating income of $3,008 million, net cash provided by operating activities of $3,874 million, total liquidity of $3.2 billion and a net debt to EBITDA ratio of 2.3x. The filing also notes that COVID-19 increased costs, lowered volumes and reduced margins, particularly in the Chicken segment, which reported a 0.9% operating margin.
Feb 11, 2021
2020
Tyson Foods Annual Report, Year Ended Oct 3, 2020
Tyson Foods, Inc. (NYSE: TSN) reported fiscal 2020, a 53-week year ended October 3, 2020, with sales of $43.19 billion, up from $42.41 billion in fiscal 2019, and operating income of $3.11 billion versus $2.83 billion. Net income attributable to Tyson was $2.14 billion, or $5.86 per diluted share, compared with $2.02 billion, or $5.52, a year earlier. Results were helped by strong Beef and Pork segment operating income of $1.69 billion and $565 million, while Chicken operating income fell to $122 million from $621 million. The company cited COVID-19 as an adverse factor, with direct incremental expenses of approximately $540 million, slowdowns and idling of production facilities, and a shift in demand from foodservice to retail. Cash flow and balance sheet metrics were stronger. Net cash provided by operating activities was $3.87 billion, compared with $2.51 billion, and cash and cash equivalents rose to $1.42 billion. Net debt to EBITDA improved to 2.2x from 2.9x, and total liquidity was $3.17 billion. The company also reported goodwill of $3,266 million for its Domestic Chicken reporting unit, and management stated that this unit would have failed the quantitative impairment test had fiscal 2020 operating margins been used as the long-term assumption. Tyson Limited Partnership controls approximately 71.06% of total voting power. For fiscal 2021, the company guided to net interest expense of about $440 million and capital spending of $1.2 billion to $1.4 billion, and it announced a quarterly dividend increase to $0.445 per Class A share, an annual rate of $1.78, which the filing describes as a 6% increase over fiscal 2020.
Nov 16, 2020
2019
Tyson Foods Annual Report, Year Ended Sep 28, 2019
Tyson Foods, Inc. (NYSE: TSN) reported fiscal 2019 sales of $42.41 billion, up from $40.05 billion in fiscal 2018, driven mainly by acquisitions and higher average sales prices in the Beef and Prepared Foods segments. Operating income declined to $2.83 billion from $3.03 billion, as record Beef segment results were offset by lower operating income in the Chicken and Pork segments. Net income attributable to Tyson was $2.02 billion, or $5.52 per diluted share, compared with $3.02 billion, or $8.19 per diluted share, in fiscal 2018, which included a $1.00 billion post-tax benefit from the Tax Cuts and Jobs Act remeasurement of deferred tax liabilities. During fiscal 2019 the company acquired Keystone Foods and the Thai and European operations of BRF S.A. for approximately $2.5 billion net of cash acquired. Total debt rose to $11.93 billion from $9.87 billion, and total debt to capitalization was 45.6%. Net debt to EBITDA increased to 2.9x from 2.4x. Operating cash flow was $2.51 billion, capital expenditures were $1.26 billion, and fiscal 2020 capital spending is expected to be about $1.3 billion. Liquidity was $1.2 billion at fiscal year-end. The filing highlights concentration and legal exposure. Walmart Inc. accounted for 16.9% of fiscal 2019 consolidated sales, and the Tyson Limited Partnership controls approximately 70.97% of total voting power. The company faces several antitrust class actions in its chicken, pork and beef businesses, including a Department of Justice grand jury subpoena related to the broiler chicken litigation. The Board also raised the quarterly dividend to $0.42 per Class A share, which the filing describes as a 12% increase in the annual fiscal 2020 dividend rate compared with fiscal 2019.
Nov 12, 2019
2018
Tyson Foods Annual Report, Year Ended Sep 29, 2018
Tyson Foods, Inc. (NYSE: TSN) reported fiscal 2018 sales of $40.05 billion, up from $38.26 billion in fiscal 2017, and operating income of $3.06 billion versus $2.93 billion. Net income attributable to Tyson rose to $3.02 billion, or $8.19 per diluted share, compared with $1.77 billion, or $4.79 per diluted share, the prior year. The result was driven largely by a $1.00 billion post-tax benefit from remeasuring deferred tax liabilities under the Tax Cuts and Jobs Act, which produced an effective tax rate of (10.3)%. Excluding that benefit, the filing shows operating income was pressured by a $109 million one-time cash bonus to frontline employees, a $68 million net impairment tied to non-protein divestitures, and $59 million of restructuring charges. Segment results were mixed. Beef operating income rose to $1.01 billion on sales of $15.47 billion, and Prepared Foods operating income increased to $868 million, helped by acquisitions and divestitures. Pork operating income fell to $361 million from $645 million on compressed margins, and Chicken operating income declined to $866 million from $1.05 billion as labor, freight and feed costs rose. The company completed acquisitions of American Proteins, Tecumseh and Original Philly for about $1.5 billion net of cash acquired, sold four non-protein businesses for net proceeds of $805 million, and agreed in August 2018 to buy Keystone Foods for $2.16 billion in cash, with closing expected in fiscal 2019. Balance sheet and liquidity indicators were stable. Total debt was $9.87 billion, net debt to EBITDA was 2.4x, and liquidity totaled $1.42 billion at year end. Operating cash flow was $2.96 billion. The company disclosed that Tyson Limited Partnership controls approximately 70.96% of the total voting power, and that Walmart Inc. accounted for 17.3% of fiscal 2018 consolidated sales. The Board increased the quarterly dividend, with fiscal 2019 annual rates expected to be $1.50 per Class A share.
Nov 13, 2018
2017
Tyson Foods Annual Report, Year Ended Sep 30, 2017
Tyson Foods, Inc. (NYSE: TSN) reported record fiscal 2017 operating income of $2,931 million on sales of $38,260 million, up from $36,881 million in fiscal 2016. Net income attributable to Tyson was $1,774 million, or $4.79 per diluted share, compared with $1,768 million, or $4.53 per diluted share, a year earlier. Results were led by record earnings in the Beef and Pork segments, with Beef operating income rising $530 million to $877 million and Pork rising $117 million to $645 million. Chicken operating income fell to $1,053 million from $1,305 million, and Prepared Foods fell to $462 million from $734 million, reflecting higher operating costs, impairments, restructuring charges and AdvancePierre acquisition costs. The June 7, 2017 acquisition of AdvancePierre Foods Holdings, Inc. for about $3.2 billion was the year's defining transaction and was funded largely with new senior notes, a term loan and commercial paper. Total debt rose to $10,203 million from $6,279 million, total debt to capitalization reached 49.1%, and the net debt to EBITDA ratio increased to 2.7x from 1.7x. The company said it does not plan to repurchase shares, other than to fund equity compensation obligations, until that ratio reaches about 2x, which it expects by the third quarter of fiscal 2018. The Board approved a Financial Fitness Program, expected to produce cumulative net savings of $200 million in fiscal 2018, $400 million in fiscal 2019 and $600 million in fiscal 2020, and the quarterly dividend was raised to $0.30 per Class A share. Key risks disclosed include Wal-Mart Stores, Inc., which accounted for 17.3% of fiscal 2017 consolidated sales, and the Tyson Limited Partnership, which controls approximately 70.78% of the total voting power. The company also cites pending broiler chicken antitrust and grower litigation, and an Oklahoma environmental lawsuit whose district court decision was still pending. Goodwill and indefinite-life intangible assets totaled $13.4 billion, or about 48% of total assets.
Nov 13, 2017
2016
Tyson Foods Annual Report, Year Ended Oct 1, 2016
Tyson Foods, Inc. reported fiscal 2016 (ended October 1, 2016) sales of $36.88 billion, down from $41.37 billion in fiscal 2015, while operating income rose to $2.83 billion from $2.17 billion. Net income attributable to Tyson was $1.77 billion, or $4.53 per diluted share, versus $2.95 in fiscal 2015. The filing attributes the sales decline mainly to lower average sales prices, led by Beef, and to the additional week in fiscal 2015 and the Mexico and Brazil chicken divestitures. Operating income improvement was led by the Beef segment, which swung to $347 million from a loss of $66 million, along with record Prepared Foods operating income of $734 million. Chicken operating income was $1.31 billion and Pork was $528 million. Cash generation and balance sheet items were solid. Operating cash flow was $2.72 billion, and the company repurchased $1.94 billion of Class A stock during the year. Total debt fell to $6.28 billion from $6.69 billion, and total debt to capitalization was 39.5%. Cash and cash equivalents were $349 million, with total liquidity of $1.3 billion. Management expects Hillshire Brands integration synergies of around $675 million in fiscal 2017, and projects capital spending of about $1.0 billion for fiscal 2017. Key risks include Wal-Mart Stores, Inc., which accounted for 17.5% of fiscal 2016 consolidated sales, and exposure to commodity costs, including feed ingredients representing roughly 57% of the cost of growing a live chicken. Tyson Limited Partnership controls approximately 71.18% of total voting power, and goodwill and indefinite-life intangible assets total $10.7 billion, about 48% of total assets. The filing also discloses pending litigation, including an EPA criminal investigation related to a 2014 Monett, Missouri incident and a broiler chicken antitrust class action filed in September 2016.
Nov 21, 2016
2015
Tyson Foods Annual Report, Year Ended Oct 3, 2015
Tyson Foods, Inc. reported record fiscal 2015 sales of $41.37 billion, up from $37.58 billion in fiscal 2014, with operating income of $2.17 billion versus $1.43 billion a year earlier. Net income attributable to Tyson was $1.22 billion, or $2.95 per diluted share, compared with $864 million, or $2.37 per diluted share, in fiscal 2014. Fiscal 2015 was a 53-week year, and the Hillshire Brands acquisition on August 28, 2014 was consolidated into the Prepared Foods segment for the full year. The Chicken segment delivered record results with operating income of $1.37 billion and a 12.0% operating margin, while Prepared Foods posted record operating income of $588 million. The Beef segment swung to an operating loss of $66 million, and Pork operating income declined to $380 million. Balance sheet and cash flow improved meaningfully. Operating cash flow was $2.57 billion, and total debt fell to $6.73 billion from $8.18 billion, with the company citing an approximate $1.7 billion net debt reduction during the year. The net debt to EBITDA ratio dropped to 2.1x from 4.1x. Goodwill and indefinite-life intangible assets totaled $10.7 billion, about 47% of total assets. Management expects more than $500 million of Hillshire synergies and profit improvement benefits in fiscal 2016 and more than $700 million by fiscal 2017. The company also recorded a $169 million impairment on its China operation and a $161 million gain on the sale of its Mexico operation. Key risks highlighted in the filing include commodity cost volatility (feed ingredients were roughly 64% of the cost of growing a live chicken), Wal-Mart's 16.8% share of sales, the controlling ownership held by the Tyson Limited Partnership (about 70.64% of voting power), and integration risk from Hillshire Brands. The Board increased the quarterly dividend to $0.15 per Class A share, and management anticipates fiscal 2016 capital spending of approximately $900 million.
Nov 23, 2015
2014
Tyson Foods Annual Report, Year Ended Sep 27, 2014
Tyson Foods, Inc. reported fiscal 2014 (52 weeks ended September 27, 2014) record sales of $37.58 billion, up from $34.37 billion in fiscal 2013, driven by price and mix improvements that offset a $2.3 billion increase in input costs. Operating income rose to $1.43 billion from $1.38 billion, and net income attributable to Tyson was $864 million, or $2.37 per diluted share, versus $2.12 in fiscal 2013. The Chicken segment delivered record operating income of $883 million, while Beef ($347 million) and Pork ($455 million) were strong; Prepared Foods swung to an operating loss of $60 million and International posted a $121 million loss. The defining event of the year was the August 28, 2014 acquisition of The Hillshire Brands Company for $63.00 per share, or $8,081 million, plus $163 million in breakage costs. Funding came from $2.3 billion of term loans, $3.25 billion of senior notes, $1.5 billion of tangible equity units and $873 million of Class A stock issuance. Total debt rose to $8.18 billion from $2.41 billion, net debt to EBITDA climbed to 4.1x from 0.7x, and goodwill and intangibles reached roughly $12 billion of total assets of $23.96 billion. The company also agreed to sell its Brazil and Mexico operations to JBS SA for $575 million in cash, with the Brazil sale expected in the first quarter of fiscal 2015. Investors should weigh the higher leverage and integration risk against the stronger scale in prepared foods. The Tyson Limited Partnership controls about 70.14% of total voting power, and Wal-Mart Stores, Inc. accounted for 14.6% of fiscal 2014 consolidated sales. The board increased the quarterly dividend to $0.10 per Class A share on November 13, 2014.
Nov 17, 2014
2013
Tyson Foods Annual Report, Year Ended Sep 28, 2013
Tyson Foods, Inc. reported fiscal 2013 (year ended September 28, 2013) as one of the world's largest meat protein companies and the second-largest food production company in the Fortune 500. Sales rose to a record $34.4 billion, up from $33.1 billion in fiscal 2012, driven mainly by higher average sales prices, while sales volume declined slightly. Operating income increased to $1.375 billion from $1.286 billion, led by record earnings in the Chicken segment ($646 million operating income, a 5.3% margin), while Beef ($296 million, 2.1%), Pork ($332 million, 6.1%) and Prepared Foods ($101 million, 3.0%) results varied. Net income attributable to Tyson was $778 million, or $2.12 per diluted share, compared with $583 million, or $1.58 per diluted share, in fiscal 2012. Cash provided by operating activities was $1.314 billion. Balance sheet and capital allocation items were also notable. Total debt was $2.408 billion, total liquidity was $2.1 billion, and the company repurchased 21.1 million shares under its program for $550 million during the year. The Board raised the quarterly dividend to $0.075 per Class A share in November 2013. Fiscal 2014 outlook calls for sales of approximately $36 billion, capital expenditures of about $700 million, and expected lower feed costs of roughly $500 million in the Chicken segment. Investors should also weigh the risks disclosed in the filing. Tyson Limited Partnership controls approximately 72.46% of total voting power, Wal-Mart Stores, Inc. accounted for 13.0% of consolidated sales, and the company faces ongoing wage-and-hour litigation, a pending Oklahoma environmental suit seeking compensatory damages in excess of $800 million, and a Department of Justice Clean Water Act complaint. Goodwill of $1.9 billion represents approximately 16% of total assets.
Nov 18, 2013
2012
Tyson Foods Annual Report, Year Ended Sep 29, 2012
Tyson Foods, Inc. reported fiscal 2012 (year ended September 29, 2012) sales of $33.28 billion, up from $32.27 billion in fiscal 2011, and net income attributable to Tyson of $583 million, or $1.58 per diluted share, versus $750 million, or $1.97 per diluted share, a year earlier. Operating income was $1.25 billion compared with $1.29 billion in fiscal 2011. Management attributed the strong operating result to improved internal performance, strong exports and favorable domestic chicken market conditions despite a $2.2 billion increase in input costs. Results were uneven across segments: Chicken operating income rose to $446 million, Pork fell to $417 million, and Beef fell to $218 million, while Prepared Foods rose to $181 million. Balance sheet and liquidity items drew attention. The company issued $1.0 billion of 4.50% senior notes due 2022 and used the proceeds to retire its 10.50% senior notes due 2014, a transaction that recorded a $167 million pretax loss on early extinguishment of debt and is expected to save approximately $55 million in annualized interest. Total liquidity was $2.0 billion at year end, including $1.07 billion of cash. Fiscal 2013 guidance called for sales of approximately $35 billion, net interest expense of about $140 million, capital expenditures of roughly $550 million, and higher grain costs of approximately $600 million, with Chicken and Beef expected to remain profitable but possibly below their normalized margin ranges. Investors should also note concentration in control and customers. The Tyson Limited Partnership and Tyson family members control approximately 71.52% of the total voting power, and Wal-Mart Stores, Inc. accounted for 13.8% of consolidated sales. The company also disclosed a pending Oklahoma environmental suit seeking compensatory damages in excess of $800 million, which management has contested, and it declared a special dividend of $0.10 per Class A share along with a 25% increase in the quarterly dividend rate.
Nov 19, 2012
2011
Tyson Foods Annual Report, Year Ended Oct 1, 2011
Tyson Foods, Inc. reported fiscal 2011 (52 weeks ended October 1, 2011) sales of $32.27 billion, up from $28.43 billion in fiscal 2010, with operating income of $1.29 billion versus $1.56 billion a year earlier. Net income attributable to Tyson was $750 million, or $1.97 per diluted share, compared with $780 million, or $2.06 per diluted share, in fiscal 2010. Management attributed the sales increase mainly to higher average sales prices tied to rising input costs, which rose by about $3.7 billion, with the Beef and Pork segments driving most of the improvement. The Chicken segment was the weak point, with operating margin falling to 1.5% from 5.2% as grain and feed ingredient costs rose $675 million. The balance sheet strengthened over the year. Total debt declined $350 million to $2.2 billion, the lowest level since the IBP acquisition, and cash and equivalents were $716 million. Operating cash flow was $1.0 billion, and the company repurchased 9.7 million Class A shares for about $170 million. Liquidity totaled $1.6 billion at year end. For fiscal 2012, Tyson guided to sales above $34 billion, capital expenditures of $800 to $850 million, and net interest expense of about $185 million, and it expects a profitable Chicken segment that strengthens through the year. Key risks include exposure to volatile grain, cattle and hog costs, Wal-Mart's 13.3% share of sales, a $560 million goodwill impairment recorded in fiscal 2009 and the 2011 Domestic Chicken goodwill of $900 million, pending wage-and-hour and environmental litigation, and control of roughly 70.74% of voting power held by the Tyson Limited Partnership and family members.
Nov 21, 2011
2010
Tyson Foods Annual Report, Year Ended Oct 2, 2010
Tyson Foods, Inc. reported fiscal 2010 (year ended October 2, 2010) sales of $28.43 billion, up from $26.70 billion in fiscal 2009, and operating income of $1.56 billion, compared with an operating loss of $215 million in fiscal 2009 that included a $560 million Beef goodwill impairment. Net income attributable to Tyson was $780 million, or $2.06 per diluted share, versus a net loss of $547 million ($1.47 per share) a year earlier. Management attributed the improvement to margin management gains, operational efficiency improvements, and better domestic market conditions. Operating margin was 5.5% for the year, which the filing describes as the first time since the 2001 IBP acquisition that annual operating margins exceeded 5.0%. Segment operating income was $519 million for Chicken, $542 million for Beef, $381 million for Pork and $124 million for Prepared Foods. Debt was reduced substantially during the year. Total debt fell to $2.54 billion from $3.48 billion, after the company repurchased, retired or redeemed $956 million of senior notes, and the filing states this is the lowest level since the IBP acquisition. Year-end cash and cash equivalents were $978 million, and total liquidity was $1.80 billion including $825 million available under a $1.0 billion revolving credit facility. Operating cash flow was $1.43 billion. Management guided to fiscal 2011 capital expenditures of approximately $700 million and net interest expense of approximately $245 million. The filing also highlights concentration and legal risks. Wal-Mart Stores, Inc. accounted for 13.4% of fiscal 2010 consolidated sales. Members of the Tyson family control approximately 70% of total voting power. Pending matters include an Oklahoma environmental suit that seeks compensatory damages in excess of $800 million, and an Armstrong case in which a jury verdict and final judgment of $8,655,735 were entered against the company, which intends to appeal. Management states that the ultimate results of other matters are not expected to have a material adverse effect on consolidated results.
Nov 22, 2010
2009
Tyson Foods Annual Report, Year Ended Oct 3, 2009
Tyson Foods, Inc. reported a net loss of $537 million, or $1.44 per diluted share, for fiscal 2009 (a 53-week year ended October 3, 2009), compared with net income of $86 million, or $0.24 per diluted share, in fiscal 2008. The loss was driven primarily by a $560 million non-cash, non-tax-deductible goodwill impairment in the Beef segment, which produced an operating loss of $215 million for the company. Sales were $26.70 billion, roughly flat with $26.86 billion in fiscal 2008. Sales volume rose 4.4% while average sales prices fell 4.8%. Net losses of $257 million on commodity risk management activities related to grain and energy purchases also weighed on results, particularly in the first half of the year. Segment results were mixed. Chicken posted an operating loss of $157 million, though the second half improved to a positive 3.5% operating margin from a negative 7.2% in the first half. Beef's operating loss was $346 million including the impairment. Pork earned $160 million (4.7% margin) and Prepared Foods earned $133 million (4.7% margin). Cash flow from operations improved to $1.03 billion from $288 million, aided by a $432 million working capital release, and the company ended the year with about $1.2 billion in total cash including restricted cash. Total debt rose to $3.55 billion from $2.90 billion, and the debt-to-capitalization ratio increased to 44.9% from 36.6%, following the March 2009 issuance of $810 million of 10.50% senior notes due 2014. The filing also highlights concentrated ownership and customer risk. Members of the Tyson family control approximately 70% of the total voting power, and Wal-Mart Stores, Inc. accounted for 13.8% of fiscal 2009 consolidated sales. Management guided to lower grain costs and improving chicken pricing in fiscal 2010, and planned capital spending of about $600 million. Donnie Smith was named President and Chief Executive Officer on November 19, 2009, succeeding interim leader Leland E. Tollett.
Nov 23, 2009
2008
Tyson Foods Annual Report, Year Ended Sep 27, 2008
Tyson Foods, Inc. reported fiscal 2008 (year ended September 27, 2008) sales of $26.86 billion, up from $25.73 billion in fiscal 2007, but net income fell to $86 million, or $0.24 per diluted share, from $268 million, or $0.75 per diluted share, a year earlier. Operating income declined to $331 million from $613 million. The decline was driven largely by the Chicken segment, which posted an operating loss of $118 million versus operating income of $325 million in fiscal 2007, reflecting increased input costs of approximately $900 million, including grain costs. The Pork segment was the standout, with record operating income of $280 million, and Beef improved to $106 million from $51 million. The balance sheet shows total assets of $10.85 billion, total debt of $2.90 billion, and shareholders' equity of $5.01 billion. Liquidity totaled $1.71 billion at year end, including $709 million available under the $1.0 billion revolver and the full $750 million under the receivables securitization facility. During fiscal 2008 the company issued $458 million of 3.25% convertible senior notes due 2013 and sold 22.4 million Class A shares for net proceeds of about $274 million. Credit ratings were downgraded by S&P and Moody's, raising interest rates on the 2016 Notes to 7.85%. Management also flagged pending litigation, including Fair Labor Standards Act cases, an Oklahoma environmental suit, and consumer class actions over "raised without antibiotics" labeling. Subsequent events included the October 2008 purchase of three Brazilian poultry companies for $80 million and the planned sale of the Lakeside Canadian beef operation for $104 million plus about $82 million for additional assets.
Nov 20, 2008
2007
Tyson Foods Annual Report, Year Ended Sep 29, 2007
Tyson Foods, Inc. reported fiscal 2007 (year ended September 29, 2007) sales of $26.90 billion, up from $25.56 billion in fiscal 2006, and operating income of $614 million, compared with an operating loss of $77 million a year earlier. Net income was $268 million, or $0.75 per diluted share, versus a net loss of $196 million ($0.58 per diluted share) in fiscal 2006. The filing attributes the improvement mainly to higher average sales prices in the Chicken and Beef segments, operating cost efficiencies and yield improvements, and a Cost Management Initiative. Sales volume declined slightly, and net grain costs rose by $256 million. Total debt was reduced to $2.78 billion, the lowest level since the 2001 IBP acquisition, and the debt-to-capitalization ratio fell to 37.0% from 47.3%. For fiscal 2008, management guided to diluted earnings per share of $0.30 to $0.70, sales of approximately $28 billion, capital spending of $425 to $475 million, and net interest expense of about $200 million. Management flagged a difficult start to fiscal 2008 in the beef industry, where cattle processing exceeded supply and demand, and expects grain costs to rise by more than $300 million. Growth initiatives include a renewable diesel alliance with ConocoPhillips, a 50/50 joint venture with Syntroleum (Dynamic Fuels LLC), and potential integrated poultry transactions in China and Brazil. Key risks include exposure to feed grain and livestock costs, livestock disease such as avian influenza and BSE, litigation (including Fair Labor Standards Act suits, an Oklahoma poultry litter suit, and a cattle-producer antitrust suit), and concentrated Tyson family voting control of approximately 71%. Wal-Mart Stores, Inc. accounted for about 12.9% of fiscal 2007 consolidated sales.
Nov 21, 2007
2006
Tyson Foods Annual Report, Year Ended Sep 30, 2006
Tyson Foods, Inc. reported a net loss of $196 million, or $0.58 per diluted share, for fiscal 2006 (year ended September 30, 2006), compared with earnings of $372 million, or $1.04 per diluted share, in fiscal 2005. Sales declined to $25.559 billion from $26.014 billion, with a 3.9% decrease in average sales price and a 2.3% increase in volume. Operating results swung to an operating loss of $77 million from operating income of $745 million a year earlier. Management attributed the difficult year to an oversupply of proteins worldwide, driven by avian influenza outbreaks, Hurricane Katrina, export market disruptions, higher energy costs, and margin declines at its Canadian and Mexican operations. The Beef segment posted an operating loss of $296 million and the Chicken segment's operating income fell to $53 million from $582 million. The company's financial position weakened over the year. Total debt rose to $3.979 billion from $2.995 billion, and the debt-to-capitalization ratio increased to 47.3% from 39.1%. Moody's downgraded the 2016 Notes to Ba1 in July 2006, and S&P lowered its rating to BBB-. Cash from operations fell to $287 million from $999 million. Management has initiated a $200 million cost reduction program and closed several plants, and it guided fiscal 2007 diluted earnings per share to a range of $0.50 to $0.80 on sales of $26 billion to $27 billion, with capital spending reduced to about $400 million. The filing also discloses meaningful legal and control matters. Several wage-and-hour class and collective actions are pending, a jury verdict of $4 million was returned against Tyson Fresh Meats in a cattle-producer antitrust case, and the Oklahoma Attorney General's poultry litter pollution suit remains active. Management also disclosed a $15 million reduction in its income tax benefit following a tax account review, which was a factor in its internal control assessment. The Tyson family controls approximately 75.06% of total voting power.
Dec 13, 2006
2006-A
Tyson Foods Annual Report (Amendment), Year Ended Feb 8, 2006
Tyson Foods, Inc. filed this Amendment No. 1 on Form 10-K/A for the fiscal year ended October 1, 2005, to restate its 2005 consolidated financial statements. The restatement corrects an error in the income tax provision: the company erroneously recorded approximately $19 million of non-recurring income tax expense related to a $55 million actuarial gain recognized under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. As restated, net income for fiscal 2005 is $372 million, or $1.04 per diluted share, compared with $353 million, or $0.99 per diluted share, as originally reported. The restatement does not change sales of $26,014 million or operating income of $765 million. Management concluded that a material weakness in internal control over financial reporting existed related to accounting for income taxes for unusual transactions, and disclosure controls were deemed not effective as of October 1, 2005. Operationally, sales declined 1.6% to $26.0 billion, with a 2.3% decrease in volume and a 0.7% increase in average sales price. Beef segment operating results were a loss of $12 million, down from operating income of $127 million in fiscal 2004, reflecting lower domestic cattle supplies and restrictions on imports of Canadian cattle. Chicken operating income rose to $582 million, Pork fell to $47 million, and Prepared Foods rose to $78 million. Total debt decreased $367 million to $3.0 billion, and the debt-to-capitalization ratio reached 39% at year end, below the company's 40% goal. Wal-Mart Stores, Inc. accounted for approximately 13% of fiscal 2005 consolidated sales. The filing also details ongoing litigation, including the Oklahoma Illinois River Watershed poultry litter suit, the Schumacher cattle-producer class action, several Fair Labor Standards Act wage and hour cases, and shareholder derivative suits. The company states that these matters are not expected to have a material adverse effect on its consolidated results or financial position, though outcomes cannot be determined.
Feb 8, 2006
2005
Tyson Foods Annual Report, Year Ended Oct 1, 2005
Tyson Foods, Inc. reported fiscal 2005 (year ended October 1, 2005) sales of $26.01 billion, down $427 million or 1.6% from $26.44 billion in fiscal 2004, with a 0.7% increase in average sales price and a 2.3% decrease in volume. Operating income fell to $765 million from $925 million, and net income declined to $353 million, or $0.99 per diluted share, from $403 million, or $1.13 per diluted share. The company attributed the results to an operating loss in its Beef segment, driven by lower domestic cattle supplies and restrictions on imports of Canadian cattle, along with higher energy costs and losses on grain risk management, partially offset by lower grain costs and higher average sales prices in Chicken, Pork and Prepared Foods. Cash flow remained strong, with cash provided by operations of $999 million. Tyson used cash to reduce debt by $367 million, fund $571 million of capital expenditures, pay $55 million of dividends and repurchase $45 million of Class A stock. Total debt declined to $2.995 billion, and the debt-to-capitalization ratio reached 39% at year end, below the company's 40% goal. Management guided to fiscal 2006 capital spending of $600 million to $650 million and expects Chicken results to remain solid, while the Beef segment is expected to face difficult conditions, especially in the first two quarters. The filing also discloses material legal exposure, including an Oklahoma class action over water quality in Grand Lake, a State of Oklahoma complaint over poultry litter pollution in the Illinois River Watershed, a Packers and Stockyards Act class action (trial tentatively set for April 2006), and several wage-and-hour suits. Wal-Mart Stores, Inc. accounted for approximately 13% of fiscal 2005 consolidated sales.
Dec 12, 2005
2004
Tyson Foods Annual Report, Year Ended Dec 15, 2004
Tyson Foods, Inc. reported record fiscal 2004 sales of $26.44 billion, up from $24.55 billion in fiscal 2003, and net income of $403 million, or $1.13 per diluted share, versus $337 million, or $0.96 per diluted share, a year earlier. The filing attributes the earnings increase primarily to higher average selling prices, improved operating efficiencies in the Chicken segment, increased demand in the Chicken and Pork segments, and improved value-added product mix. Earnings were held back by higher grain costs, higher raw material costs, continued limited access to export markets, and $61 million of BSE-related charges. Fiscal 2004 was a 53-week year. Operating income rose to $925 million from $837 million, while the Beef segment's operating income fell to $127 million from $320 million. Balance sheet and cash flow improved. Cash provided by operations was $932 million, up $112 million, and total debt fell by $242 million to $3.36 billion. The company reported the debt-to-capitalization ratio at 44%, against its stated goal of 45%. Management's fiscal 2005 goals include reducing that ratio to 40%, raising value-added products to over 40% of sales, and improving return on invested capital to 14%. Management expects the Chicken, Pork and Prepared Foods segments to be strong in fiscal 2005, while Beef operations will remain difficult because the Canadian border is closed to live cattle and trade with Japan has not resumed. The filing also discloses several legal and regulatory matters. Among them, the company and Don Tyson proposed civil penalties of $1.5 million and $200,000, respectively, to settle an SEC matter concerning disclosure of executive perquisites. Other matters include a class action under the Packers and Stockyards Act over 2001 cattle purchases, a wage-and-hour suit in Alabama, and a federal grand jury investigation tied to a 2003 workplace fatality. Management believes that the pending matters are not expected to have a material adverse effect on consolidated results or financial position, except as the filing otherwise notes. The company also disclosed five matters that could be significant deficiencies in internal controls, though management does not consider them a material weakness.
Dec 15, 2004
2003-A
Tyson Foods Annual Report (Amendment), Year Ended Sep 27, 2003
Tyson Foods, Inc. reported fiscal 2003 (year ended September 27, 2003) sales of $24.549 billion, up from $23.367 billion in fiscal 2002, with net income of $337 million, or $0.96 per diluted share, compared with $383 million, or $1.08 per diluted share, in fiscal 2002. Results were shaped by two notable items: $167 million received from vitamin antitrust litigation settlements and $76 million of pretax costs for closing poultry operations. Operating income fell to $837 million from $887 million, driven primarily by a sharp decline in Chicken segment operating income to $158 million from $428 million, due to higher grain costs and plant closing costs. Beef was the standout, with sales of $11.935 billion and operating income of $320 million, aided by strong demand in the second half of the year partly tied to the U.S. ban on Canadian beef. The balance sheet strengthened over the year. Total debt declined to $3.604 billion from $3.987 billion, and shareholders' equity rose to $3.954 billion from $3.662 billion. Cash provided by operations was $820 million, down from $1.174 billion, mainly due to a $423 million working capital change. Management expects fiscal 2004 capital spending of $450 to $500 million and recorded plans to close facilities in Manchester, New Hampshire, and Augusta, Maine, with pretax charges of roughly $23 to $27 million expected in the first half of fiscal 2004. Key risks disclosed include a large pending wage-and-hour litigation portfolio, a class action in the In re Tyson Foods securities matter, the Pickett cattle producer suit against IBP (with an amended expert report calculating class damages above $2.1 billion, exclusive of interest), and the potential loss of the Extraterritorial Income Exclusion tax benefit, which could adversely affect the effective tax rate. Management views these matters as not expected to have a material adverse effect on consolidated results or financial position, though outcomes are uncertain.
Jan 8, 2004
2002-A
Tyson Foods Annual Report (Amendment), Year Ended Sep 28, 2002
Tyson Foods, Inc. filed this Amendment No. 1 on Form 10-K/A to amend its annual report for the fiscal year ended September 28, 2002, in response to SEC staff comments. The amendment presents the full annual report as amended. It does not restate the consolidated financial statements. The changes reclassify intangible assets as a separate balance sheet line, add the tax effects of comprehensive income components to the Statement of Shareholders' Equity, expand market risk disclosures in Item 7A, and add Exhibit 12.1, the Computation of Ratio of Earnings to Fixed Charges. Fiscal 2002 sales were $23.37 billion, up 121.2%, driven mainly by the inclusion of IBP, inc. for a full 52 weeks after its acquisition. Net income was $383 million, or $1.08 per diluted share, compared with $88 million, or $0.40 per diluted share, in fiscal 2001. Operating income was $887 million, and cash provided by operations was $1.17 billion. Total debt fell to $3,987 million, a decrease of approximately $789 million, and the company reported $3,662 million in shareholders' equity. Beef sales were $10.49 billion, Chicken $7.22 billion, Pork $2.50 billion and Prepared Foods $3.07 billion. Results were affected by a $26 million live swine restructuring charge, a $27 million write-down related to discontinuing the Thomas E. Wilson brand, a $22 million gain on the sale of Specialty Brands, and a $30 million partial settlement of vitamin antitrust litigation. The filing describes numerous pending lawsuits, including a Department of Labor Fair Labor Standards Act complaint, wage and hour class actions, and a cattle producer class action in which plaintiffs claim damages in excess of $500 million. For each, the company states that the outcome cannot be determined at this time.
Jan 8, 2004
2003
Tyson Foods Annual Report, Year Ended Sep 27, 2003
Tyson Foods, Inc. (Class A stock traded on the NYSE as "TSN") reported fiscal 2003 sales of $24.549 billion, up $1.2 billion or 5.1% from $23.367 billion in fiscal 2002, with a slight volume increase and a 5.0% increase in price. Net income was $337 million, or $0.96 per diluted share, compared with $383 million, or $1.08 per diluted share, in fiscal 2002. Pretax earnings included $167 million received from vitamin antitrust litigation settlements and $76 million of costs tied to closing poultry operations. Operating income fell to $837 million from $887 million, mainly because of higher live cattle prices in Beef, higher grain costs in Chicken, and plant closing costs. Chicken operating income dropped $270 million, while Beef operating income rose $100 million. Cash provided by operations declined to $820 million from $1.174 billion, driven by a $423 million net change in working capital. Total debt decreased to $3.604 billion from $3.987 billion, and shareholders' equity rose to $3.954 billion from $3.662 billion. The company reported $1.5 billion in borrowing capacity at year-end and expects fiscal 2004 capital spending of $450 to $500 million. It also announced facility closures in Manchester, New Hampshire, and Augusta, Maine, with pretax charges of approximately $23 to $27 million expected in the first half of fiscal 2004. The filing also discloses legal exposures, including a Department of Labor wage-and-hour complaint, several wage-and-hour class actions, and a cattle producer class action against IBP, Inc. in which plaintiffs' expert calculated class damages exceeding $2.1 billion (exclusive of pre-judgment interest). Management believes IBP's cattle purchasing practices are lawful and that the company's accruals are adequate, but says an adverse outcome could have a material effect on results.
Dec 16, 2003
2002
Tyson Foods Annual Report, Year Ended Sep 28, 2002
Tyson Foods, Inc. reported fiscal 2002 (year ended September 28, 2002) sales of $23.37 billion, up from $10.56 billion in fiscal 2001, reflecting the inclusion of IBP, inc. for a full 52 weeks after the acquisition completed in fiscal 2001. Net income was $383 million, or $1.08 per diluted share, compared with $88 million, or $0.40 per diluted share, in fiscal 2001. Operating income rose to $887 million from $316 million. Results were helped by the addition of IBP's beef, pork and prepared foods operations, improved chicken segment performance, a $22 million pretax gain on the sale of Specialty Brands, Inc., and a $30 million pretax partial settlement of vitamin antitrust litigation. Charges included a $27 million write-down tied to discontinuing the Thomas E. Wilson brand and a $26 million live swine restructuring charge. Cash provided by operations was $1.17 billion, up from $511 million, and total debt fell to $3.99 billion from $4.78 billion at the prior year end. Shareholders' equity increased to $3.66 billion. Beef was the largest segment by sales at $10.49 billion but earned only $220 million of operating income, while Chicken contributed $428 million of operating income on $7.22 billion of sales. Investors should note the significant pending litigation disclosed in Item 3, including a Department of Labor Fair Labor Standards Act complaint, multiple wage-and-hour class actions, an immigration-related indictment with trial expected in February 2003, securities litigation tied to the terminated IBP merger, and a cattle producer class action in which plaintiffs claim damages in excess of $500 million. The company states it cannot determine the likelihood or amount of ultimate liability in several of these matters.
Nov 27, 2002
2001
Tyson Foods Annual Report, Year Ended Sep 29, 2001
Tyson Foods, Inc. reported fiscal 2001 (year ended September 29, 2001) sales of $10,751 million, up from $7,410 million in fiscal 2000, with sales increasing 45.1%. The increase was driven mainly by nine weeks of results from IBP, inc., acquired in the fourth quarter. Net income fell to $88 million, or $0.40 per diluted share, from $151 million, or $0.67 per share, a year earlier. The filing attributes the earnings pressure to an oversupply of chicken for most of the year, which weighed on prices and margins for value-added products, along with weather, higher grain and energy costs. Cost of sales rose to 89.9% of sales from 87.1%, and operating income was $315 million compared with $348 million. The IBP acquisition reshaped the company into five segments: Beef, Chicken, Pork, Prepared Foods and Other. The company acquired 50.1% of IBP for approximately $1.7 billion in cash in August 2001, then issued about 129 million Class A shares with a fair value of approximately $1.2 billion for the remaining shares and assumed about $1.7 billion of IBP debt, for a total acquisition cost of approximately $4.6 billion. Total debt rose to $4.8 billion from $1.5 billion, and shareholders' equity was $3.4 billion. Cash from operations was $511 million, a decrease of $76 million. Subsequent to year end, the company refinanced its $2.3 billion bridge facility with $2.25 billion of senior notes. The filing also discloses significant legal matters, including Fair Labor Standards Act wage-and-hour suits, an indictment in the Eastern District of Tennessee for alleged Immigration and Naturalization Act violations, an anticipated indictment regarding Clean Water Act activities at the Sedalia, Missouri facility, a Securities and Exchange Commission formal investigation of IBP related to its earnings restatement, and Delaware litigation arising from the IBP merger. The company states that it believes it has substantial defenses to these claims, but the outcome of several matters cannot be determined at this time.
Dec 21, 2001
2000
Tyson Foods Annual Report, Year Ended Sep 30, 2000
Tyson Foods, Inc. reported fiscal 2000 (ended September 30, 2000) net income of $151 million, or $0.67 per diluted share, down from $230 million, or $1.00 per share, in fiscal 1999. Sales fell 2.8% to $7.16 billion from $7.36 billion, mainly due to the July 1999 sale of the seafood business and other divested non-core businesses. Management attributed the earnings decline to an oversupply of chicken, a weak domestic chicken market, a $33 million charge on non-recurring items (including a $24 million AmeriServe bad debt writeoff and growout issues at Tyson de Mexico), higher grain costs, and losses at the Mexican subsidiary from Exotic Newcastle disease. Management expects the chicken oversupply to continue into fiscal 2001 and says it kept chicken production 3% below prior levels during fiscal 2000. Operating income fell to $348 million from $487 million, and return on invested capital declined to 8.2% from 10.9%. Food Service and Consumer Products segment profits fell sharply, while the Swine segment improved to a $19 million profit from a $63 million loss, driven by higher average swine prices. Cash provided by operations rose to $587 million, and total debt decreased by $262 million to $1.5 billion. Shareholders' equity reached $2.18 billion, and the company continued paying quarterly dividends. The filing also describes several contingent matters: the Fox v. Tyson Fair Labor Standards Act suit, a Department of Labor wage and hour investigation, an Immigration and Naturalization Service investigation in which the company was named a subject as of October 2000, and an environmental investigation at its Sedalia, Missouri facility. A roughly $20 million jury award against ConAgra was reversed by the Chancery Court on December 4, 2000, and the company plans to appeal.
Dec 8, 2000
1998
Tyson Foods Annual Report, Year Ended Oct 3, 1998
Tyson Foods, Inc. reported fiscal 1998 (53 weeks ended October 3, 1998) with sales of $7,414.1 million, up from $6,355.7 million in 1997, driven largely by the Hudson Foods acquisition completed January 9, 1998. Net income fell sharply to $25.1 million, or $0.11 per diluted share, from $185.8 million, or $0.85 per diluted share, in 1997. The decline reflects $214.6 million in pre-tax asset impairment and other charges taken in the fourth quarter, including $142.2 million for asset impairment, writedowns and severance, $48.4 million for losses in the Russian export business following the Ruble devaluation, and $24.0 million for other charges. Operating income was $203.6 million versus $399.9 million a year earlier, and the effective tax rate rose to 64.7%. Total assets grew to $5,242.5 million and total debt reached $2.1 billion, up $438.8 million, with shareholders' equity of $1,970.4 million. Cash provided by operating activities was $496.4 million, and capital expenditures were $310.4 million. The company announced a restructuring to focus on its core chicken business, including the closure of eight plants and feedmills and the planned sale of certain assets, including Willow Brook Foods and the Albert Lea facility. The company also disclosed a lawsuit seeking trebled damages in excess of $3 billion, which management believes lacks merit, and the company is in compliance with most debt covenants, with waivers obtained for others.
Dec 16, 1998
1994
Tyson Foods Annual Report, Year Ended Oct 1, 1994
Tyson Foods, Inc. and its subsidiaries produce, market and distribute value-enhanced and fresh/frozen poultry, beef, pork, seafood, Mexican food-based products, and animal feed and pet food. The company reported fiscal 1994 (ended October 1, 1994) sales of $5.11 billion, up from $4.71 billion in fiscal 1993, with gross margin of $961.2 million. Operating expenses rose to $766.0 million, reflecting $213.9 million of special charges related to Arctic Alaska Fisheries Corporation, which produced a net loss of $2.1 million, or $(0.01) per share, compared with net income of $180.3 million, or $1.22 per share, in fiscal 1993. Before special charges, the company's earnings per share were $1.37. The balance sheet strengthened in working capital, which rose to $721.5 million from $285.1 million, mainly because the company discontinued its accounts receivable sale agreement and financed through commercial paper. Long-term debt increased to $1.38 billion from $920.5 million, and shareholders' equity declined to $1.29 billion from $1.36 billion, partly due to $66.9 million in treasury share purchases. Operating cash flow fell sharply to $50.3 million from $308.4 million, as accounts receivable increased $307.4 million. During the year, Tyson completed several acquisitions, including Trasgo, S.A. de C.V. (raised to 50.1% ownership), Cobb-Vantress, Inc. (raised to 100%), Gorges Foodservice, and Culinary Foods. The company also has plans for four new poultry-processing complexes, with the first expected to start production in mid-1995, and $151.5 million of construction projects in progress. Pending legal matters include criminal indictments against former officers and employees of Arctic, with a trial of a portion of the defendants expected to begin in June 1995.
Dec 14, 1994