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Tyson Foods Annual Report, Year Ended Sep 30, 2000

Filing Date
Filed December 8, 2000
Period End
September 30, 2000
Security
TSN
In the record · 2016–202610-K1110-Q338-K142

TSN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jun ’17Jun ’17
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Oct ’21Oct ’21
  4. FY2025 annual report10-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed December 8, 2000. Cited figures are marked; the original filing is the authoritative source.

Tyson Foods, Inc. reported fiscal 2000 (ended September 30, 2000) net income of $151 milliona, 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 billionb 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 millionc 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 billiond, 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.

02—Key points

Key Highlights

  1. Net income fell to $151 million ($0.67 per diluted share) in fiscal 2000 from $230 million ($1.00 per share) in fiscal 1999.
  2. Sales declined 2.8% to $7.16 billion, largely due to the July 1999 sale of the seafood business and other divested non-core businesses; comparable sales rose 0.6%.
  3. Chicken oversupply and a weak domestic chicken market hurt results; management expects the oversupply to continue into fiscal 2001.
  4. Operating income dropped to $348 million from $487 million, and return on invested capital fell to 8.2% from 10.9%.
  5. Swine segment profit improved to $19 million from a $63 million loss, driven by higher average sales prices.
  6. Cash from operations rose to $587 million, and total debt was reduced by $262 million to $1.5 billion.
  7. Pending legal and regulatory matters include the Fox v. Tyson wage suit, a Department of Labor investigation, an INS investigation naming the company as a subject, and a Sedalia, Missouri environmental investigation.

03—Questions

Frequently Asked Questions

  1. Why did Tyson's earnings decline in fiscal 2000?

    Management cited an oversupply of chicken and a weak domestic chicken market, a $33 million charge on non-recurring items (including a $24 million AmeriServe bad debt writeoff), higher grain costs, and losses at the Mexican subsidiary due to Exotic Newcastle disease.

  2. How did the company's segments perform?

    Food Service segment profit fell to $197 million from $311 million and Consumer Products fell to $145 million from $241 million, both on lower market prices and higher grain costs. Swine segment profit improved to $19 million from a $63 million loss, primarily due to higher average sales prices.

  3. What is the company's debt and liquidity position?

    Total debt was $1.5 billion at September 30, 2000, down $262 million from October 2, 1999. The company has a $1 billion unsecured revolving credit agreement expiring in May 2002, of which $260 million in commercial paper was outstanding. Cash provided by operations was $587 million.

  4. Are there outstanding legal or regulatory matters that could affect investors?

    Yes. The Fox v. Tyson Fair Labor Standards Act suit is ongoing, the Department of Labor is conducting a wage and hour investigation, and the INS has named the company as a subject of an immigration investigation. The outcome and potential liability for these matters cannot be determined at this time. A roughly $20 million jury award against ConAgra was reversed in December 2000, and the company plans to appeal.

  5. Does Tyson pay dividends?

    Yes. The company has paid uninterrupted quarterly dividends since 1977. The annual dividend rate is $0.16 per share for Class A stock and $0.144 per share for Class B stock.

04—Continue

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