Tyson Foods Reports Third Quarter and Nine Months Results

Tyson Reports Third Quarter and Nine Months Results

* 3rd quarter EPS of $0.31 as compared to a loss of $0.15 last year
* All four segments improved sales and operating income compared to
same quarter last year
— Beef sales increased $330 million, operating income increased
$43 million
— Chicken sales increased $146 million, operating income increased
$154 million
— Pork sales increased $99 million, operating income increased $25
million
— Prepared Foods sales increased $5 million, operating income
increased $13 million
* Sales and operating income improved versus second quarter fiscal
2007 in all four segments
* Revised fiscal 2007 diluted earnings per share are estimated to be
$0.82 to $0.92

Tyson Foods, Inc. (NYSE:TSN) today reported earnings of $0.31 per diluted share for the third fiscal quarter ended June 30, 2007, compared to a loss of $0.15 per diluted share in the same quarter last year. Third quarter 2007 sales were $7.0 billion compared to $6.4 billion for the same period last year. Operating income was $209 million compared to operating loss of $25 million, and net income was $111 million compared to a net loss of $52 million, for the same period last year.

Diluted earnings per share for the nine months of fiscal 2007 were $0.66 compared to a diluted loss per share of $0.41 in the same period last year. Sales for the nine months of fiscal 2007 were $20.0 billion compared to $19.1 billion for the same period last year. Operating income for the nine months of fiscal 2007 was $512 million compared to operating loss of $57 million, and net income was $236 million compared to net loss of $140 million, for the same period last year. Operating loss for the nine months of fiscal 2006 included $59 million, or $0.11 per diluted share, of costs related to beef and prepared foods plant closings.

“This was another good quarter for us, and all the credit goes to Tyson team members,” said Richard L. Bond, president and chief executive officer. “They’re focused intently on executing our business plans and Cost Management Initiative, and our earnings reflect their work.

“Sales dollars, operating income and operating margins are greatly improved in all four segments over the third quarter of 2006 as well as the second quarter of 2007,” Bond said. “Sales volumes were down overall, primarily as a result of planned production cuts and the impact of price increases.

“It’s an exciting time to be at Tyson Foods with our Raised Without Antibiotics and Any’tizers(tm) product launches, the new ‘Thank You, Mom’ advertising campaign and our renewable fuels venture with Syntroleum. We will continue working toward more game changers like these for our company.”

Outlook

The Company has revised its outlook for fiscal 2007 diluted earnings per share to be in the range of $0.82 to $0.92.