Tyson Reports Second Quarter and Six Months Results

Apr 30, 2001, 01:00 ET from Tyson Foods, Inc.

    SPRINGDALE, Ark., April 30 /PRNewswire/ -- Tyson Foods, Inc. (NYSE:   TSN),
 today reported $0.03 diluted loss per share for the second fiscal quarter
 ended March 31, 2001, compared to $0.16 diluted earnings per share in the same
 quarter last year.
     Second quarter charges totaling $0.02 per share were related to expenses
 associated with the terminated acquisition of IBP, inc.  Additionally,
 previously announced charges totaling approximately $0.05 per share were
 incurred related to the sale of certain swine assets, the product recall and
 the on-going effect of severe winter weather.  Excluding these charges, second
 quarter earnings would have been approximately $0.04 per share.
    Second quarter sales were $1.83 billion compared to $1.79 billion last
 year, an increase of 2.0 percent with a 2.1 percent increase in volume.  Gross
 profits for the second quarter were $216.3 million compared to $297.3 million
 in the same quarter last year with gross margin at 11.8 percent compared to
 16.6 percent last year.
     Diluted earnings per share for the six months of fiscal 2001 were
 $0.09 compared to $0.41 in the same period last year.  Earnings for the six
 months of fiscal 2001 decreased $71.8 million to $20.9 million compared to
 $92.7 million from the same period last year.  Sales for the six months of
 fiscal 2001 and the same period last year were $3.57 billion.
     John Tyson, chairman, president and CEO, said, "The second quarter has
 been one of the toughest in our history due to the lingering winter weather
 effects combined with the on-going low prices for breast meat.  We continue to
 see a shift in our mix toward value-added products that has resulted in
 revenue gains in each of our business segments.  Our focus on growing market
 share in those products will pay off in the future.  Looking ahead to the
 third quarter, we expect to see improving markets, improving costs and
 seasonal volume increases."
     The Company presently identifies segments based on the products offered
 and the nature of customers.  This results in the following reported business
 segments: Food Service, Consumer Products, International, Swine and Other.
 The Company measures segment profit as gross profit less selling expenses.
 Information on segments is as follows (in millions):
 
 
      Second Quarter Segment Review
 
                             Sales by Segment             Segment Profit
 
                            Three Months Ended          Three Months Ended
 
                        March 31,       April 1,      March 31,    April 1,
                           2001           2000          2001         2000
 
     Food Service         $819.9         $813.1         $18.0        $49.9
     Consumer Products     582.1          562.7          14.0         39.3
     International         181.7          171.1          (0.4)        19.8
     Swine                  39.5           38.3           1.9          6.5
     Other                 204.3          205.6          43.7         40.9
     Total              $1,827.5       $1,790.8         $77.2       $156.4
 
     Food Service second quarter sales increased 0.8 percent compared to the
 same period last year, with a 9.4 percent increase in average sales prices
 primarily due to a change in product mix, offset by a 7.8 percent decrease in
 volume.  Segment profit for Food Service decreased $31.9 million from the same
 period last year primarily due to weather-related effects combined with higher
 grain and energy costs and product mix changes.
     Consumer Products second quarter sales increased 3.4 percent compared to
 the same period last year, with a 2.6 percent increase in average sales prices
 and a 0.8 percent increase in volume.  Segment profit for Consumer Products
 decreased $25.3 million from the same period last year primarily due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  In addition, this segment experienced operating
 inefficiencies and inventory losses related to the previously announced
 product recall.
     International second quarter sales increased 6.2 percent compared to the
 same period last year, with a 12.2 percent increase in volume partially offset
 by a 5.3 percent decrease in average sales prices.  Segment profit for
 International decreased $20.2 million from the same period last year due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  Of the $20.2 million decrease, $12.0 million is related
 to Tyson de Mexico, which, in addition to higher energy costs, experienced
 operating inefficiencies following last year's outbreak of Exotic Newcastle
 disease.
     Swine second quarter sales increased 3.1 percent over the same period last
 year, with a 4.5 percent increase in volume partially offset by a 1.1 percent
 decrease in average sales prices.  Segment profit for Swine decreased
 $4.6 million from the same period last year primarily due to market changes.
     Other second quarter sales decreased 0.6 percent from the same period last
 year primarily due to a decrease in Prepared Foods sales.  Other consists
 primarily of the Specialty Products group, the Prepared Foods group, the
 chicken breeding stock subsidiary and other corporate operating activities.
 
 
      Six Months Segment Review
 
                            Sales by Segment              Segment Profit
 
                            Six Months Ended             Six Months Ended
 
                        March 31,       April 1,      March 31,    April 1,
                           2001           2000          2001         2000
 
     Food Service       $1,621.9       $1,637.9        $ 54.8       $119.5
     Consumer Products   1,110.8        1,100.4          52.1         92.4
     International         369.1          358.7           2.1         44.1
     Swine                  77.6           70.4           1.9          5.5
     Other                 391.4          402.1          86.4         62.0
     Total              $3,570.8       $3,569.5        $197.3       $323.5
 
     Food Service six months sales decreased 1.0 percent compared to the same
 period last year, with a 7.9 percent decrease in volume offset by a
 7.5 percent increase in average sales prices primarily due to a change in
 product mix.  Segment profit for Food Service decreased $64.7 million from the
 same period last year primarily due to weather-related effects combined with
 higher grain and energy costs and product mix changes.
     Consumer Products six months sales increased 0.9 percent compared to the
 same period last year, with a 1.3 percent increase in volume partially offset
 by a 0.3 percent decrease in average sales prices.  Segment profit for
 Consumer Products decreased $40.3 million from the same period last year
 primarily due to weather-related effects combined with higher grain and energy
 costs and product mix changes.  In addition, this segment experienced
 operating inefficiencies and inventory losses related to the previously
 announced product recall.
     International six months sales increased 2.9 percent compared to the same
 period last year, with a 5.5 percent increase in average sales prices
 partially offset by a 2.5 percent decrease in volume.  Segment profit for
 International decreased $42.0 million from the same period last year due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  Of the $42.0 million decrease, $21.2 million is related
 to Tyson de Mexico, which, in addition to higher energy costs, experienced
 operating inefficiencies following last year's outbreak of Exotic Newcastle
 disease.
     Swine six months sales increased 10.2 percent over the same period last
 year, with a 7.6 percent increase in average sales prices and a 2.5 percent
 increase in volume.  Segment profit for Swine decreased $3.6 million from the
 same period last year primarily due to market changes.
    Other six months sales decreased 2.7 percent from the same period last year
 primarily due to a decrease in Prepared Foods sales.  Other consists primarily
 of the Specialty Products group, the Prepared Foods group, the chicken
 breeding stock subsidiary and other corporate operating activities.
 
 
     The unaudited results are as follows:
 
                             CONSOLIDATED CONDENSED
                              STATEMENTS OF INCOME
                      (In millions except per share data)
 
                                Three Months Ended        Six Months Ended
                               March 31,   April 1,     March 31,   April 1,
                                  2001       2000          2001       2000
 
     Sales                     $1,827.5    $1,790.8     $3,570.8    $3,569.5
     Cost of Sales              1,611.2     1,493.5      3,093.7     2,959.1
     Gross Profit                 216.3       297.3        477.1       610.4
     Expenses:
       Selling                    139.1       140.9        279.8       286.9
       General and
        administrative             45.7        56.5         89.3        92.2
       Amortization                 8.5         8.6         16.9        17.1
     Operating Income              23.0        91.3         91.1       214.2
     Other Expense (Income):
       Interest                    28.8        29.8         55.3        58.5
       Foreign currency
        exchange                   (0.1)       (0.8)         0.9        (0.2)
       Other                        4.3         1.1          4.1         2.7
     Income (Loss) Before
      Income Taxes and
      Minority Interest           (10.0)       61.2         30.8       153.2
     Provision (Benefit)
      for Income Taxes             (3.5)       21.8         10.7        54.6
     Minority Interest             (0.5)        3.7         (0.8)        5.9
     Net Income (Loss)            $(6.0)      $35.7        $20.9       $92.7
 
     Diluted Earnings (Loss)
      Per Share                  $(0.03)      $0.16        $0.09      $ 0.41
     Diluted Average Shares
      Outstanding                 221.4       225.7        222.6       227.0
     Dividends Per Share:
         Class A                 $0.040      $0.040       $0.080      $0.080
         Class B                 $0.036      $0.036       $0.072      $0.072
 
     Sales Growth (Decline)        2.0%       (2.7%)        0.0%       (2.6%)
     Margins: (Percent of
      Sales)
     Gross Profit                 11.8%       16.6%        13.4%       17.1%
     Operating Income              1.3%        5.1%         2.6%        6.0%
     Income (Loss) Before
      Income Taxes and
      Minority Interest           (0.5%)       3.4%         0.9%        4.3%
     Net Income (Loss)            (0.3%)       2.0%         0.6%        2.6%
 
     Effective Tax Rate           35.4%       35.6%        34.7%       35.6%
 
 
                             CONSOLIDATED CONDENSED
                                 BALANCE SHEETS
                     (In millions except per share amounts)
 
     Assets                                     March 31, 2001  Sept. 30, 2000
     Current Assets:
       Cash and cash equivalents                    $ 83.5           $42.9
       Accounts receivable, net of allowance         502.5           508.0
       Inventories                                   958.5           965.1
       Other current assets                           58.6            47.3
     Total Current Assets                          1,603.1         1,563.3
     Net Property, Plant and Equipment             2,092.3         2,140.9
     Excess of Investments over Net Assets
      Acquired                                       921.6           936.8
     Investments and Other Assets                    254.0           200.0
     Total Assets                                 $4,871.0        $4,841.0
 
     Liabilities and Shareholders' Equity
     Current Liabilities:
       Notes payable                                 $81.8           $61.6
       Current portion of long-term debt              73.1           122.7
       Trade accounts payable                        327.4           333.3
       Accrued compensation and benefits             121.6           103.7
       Other accrued liabilities                     266.0           251.5
     Total Current Liabilities                       869.9           872.8
     Long-Term Debt                                1,447.6         1,356.8
     Deferred Income Taxes                           366.7           384.8
     Other Liabilities                                48.1            51.1
     Shareholders' Equity:
       Common stock ($.10 par value)
        Class A-authorized 900 million shares:
        Issued 138 million shares at 3-31-01
         and 9-30-00                                  13.8            13.8
        Class B-authorized 900 million shares:
        Issued 103 million shares at 3-31-01
         and 9-30-00                                  10.3            10.3
        Capital in excess of par value               734.6           734.7
        Retained earnings                          1,719.6         1,715.7
        Other accumulated comprehensive loss         (17.6)           (4.7)
                                                   2,460.7         2,469.7
        Less treasury stock, at cost-
         18 million shares at 3-31-01
          and 16 million shares at 9-30-00           314.6           284.5
        Less unamortized deferred compensation         7.4             9.7
     Total Shareholders' Equity                    2,138.7         2,175.5
 
     Total Liabilities and Shareholders' Equity   $4,871.0        $4,841.0
 
 
                             CONSOLIDATED CONDENSED
                            STATEMENTS OF CASH FLOWS
                            For the Six Months Ended
                                 (In millions)
 
                                                 March 31, 2001  April 1, 2000
     Cash Flows from Operating Activities:
       Net income                                     $20.9          $92.7
       Adjustments to reconcile net income
        to cash provided by operating activities:
         Depreciation                                 130.8          126.7
         Amortization                                  16.9           17.1
         Amortization of deferred compensation          2.3            ---
         Provision for doubtful accounts                0.7           28.4
         Foreign currency exchange                      0.9           (0.2)
         Minority interest                             (0.8)           5.9
         Deferred income taxes                        (15.9)         (18.4)
         Loss on dispositions of assets                 3.9            3.0
         Decrease in accounts receivable                5.9           67.9
         Decrease in inventories                        0.6            1.2
         Decrease in trade accounts payable            (5.9)         (53.4)
         Increase in accrued compensation
          and benefits                                 17.9            8.5
         Net change in other current assets
          and other current liabilities                (6.6)          19.5
     Cash Provided by Operating Activities            171.6          298.9
     Cash Flows from Investing Activities:
       Additions to property, plant and equipment    (106.8)         (94.3)
       Proceeds from disposition of assets             24.3            1.7
       Investment in note receivable                  (66.5)           ---
       Net change in other assets and liabilities       4.2           (4.1)
     Cash Used for Investing Activities              (144.8)         (96.7)
     Cash Flows from Financing Activities:
       Net change in notes payable                     20.2          (43.9)
       Proceeds from long-term debt                   109.2           82.9
       Repayments of long-term debt                   (69.0)        (172.2)
       Purchases of treasury shares                   (30.1)         (50.5)
       Dividends                                      (17.0)         (17.4)
       Other                                            ---            1.0
     Cash Provided by (Used for) Financing
      Activities                                       13.3         (200.1)
     Effect of Exchange Rate Change on Cash             0.5           (1.1)
     Increase in Cash and Cash Equivalents             40.6            1.0
     Cash and Cash Equivalents at Beginning
      of Period                                        42.9           30.3
     Cash and Cash Equivalents at End of Period       $83.5          $31.3
 
     Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the world's
 largest fully integrated producer, processor and marketer of chicken and
 chicken-based convenience foods, with 68,000 team members and 7,000 family
 farmers in more than 100 communities.  Tyson has operations in 18 states and
 16 countries and exports to 79 countries worldwide.  Tyson is the recognized
 market leader in almost every retail and foodservice market it serves.
 Through its Cobb-Vantress subsidiary, Tyson is also a leading chicken breeding
 stock supplier.  In addition, Tyson is the nation's second largest maker of
 corn and flour tortillas under the Mexican Original(R) brand, as well as a
 leading provider of live swine.
     A conference call to discuss the Company's financial results will be held
 at 10:00 a.m. CDT (11:00 a.m. EDT) today.  To listen live via telephone, call
 877-260-8897.  International callers dial 612-332-0819.  No access code is
 required.  The call also will be webcast live on the Internet at
 www.tyson.com/investorrel/publications/confcall.asp.  The webcast will be
 available for replay within two hours of the conclusion of the call.  A
 telephone replay will be available beginning at 1:30 p.m. CDT today through
 May 30 at 800-475-6701.  International callers dial 320-365-3844.  The replay
 access code is 578815.  A spreadsheet of the tables in this release will soon
 be available at www.tyson.com/investorrel/newsinfo/xls/q201.xls.
 
     Forward-Looking Statements.
     Certain statements contained in this communication are "forward-looking
 statements," such as statements relating to growing market share and third
 quarter expected performance.  These forward-looking statements are subject to
 risks, uncertainties and other factors which could cause actual results to
 differ materially from historical experience or from future results expressed
 or implied by such forward-looking statements.  Among the factors that may
 cause actual results to differ materially from those expressed in, or implied
 by, the statements are the following: (i) fluctuations in the cost and
 availability of raw materials, such as feed grain costs; (ii) changes in the
 availability and relative costs of labor and contract growers; (iii) market
 conditions for finished products, including the supply and pricing of
 alternative proteins; (iv) effectiveness of advertising and marketing
 programs; (v) the ability of the Company to make effective acquisitions and
 successfully integrate newly acquired businesses into existing operations;
 (vi) risks associated with leverage, including cost increases due to rising
 interest rates; (vii) risks associated with effectively evaluating derivatives
 and hedging activities; (viii) changes in regulations and laws, including
 changes in accounting standards, environmental laws, occupational, health and
 safety laws; (ix) issues related to food safety, including costs resulting
 from product recalls, regulatory compliance and any related claims or
 litigation; (x) adverse results from ongoing litigation; (xi) access to
 foreign markets together with foreign economic conditions, including currency
 fluctuations; and (xii) the effect of, or changes in, general economic
 conditions.  The Company wishes to caution readers not to place undue reliance
 on any forward-looking statements, which speak only as of the date made.
 Tyson undertakes no obligation to publicly update any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.
     Financial information, such as this news release, as well as other
 historical data and current Company information can now be accessed from the
 Company's web site on the internet at http://www.tyson.com.
     For a copy of this release, call fax-on-demand at (800) 758-5804, ext.
 113769.
 
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SOURCE Tyson Foods, Inc.
    SPRINGDALE, Ark., April 30 /PRNewswire/ -- Tyson Foods, Inc. (NYSE:   TSN),
 today reported $0.03 diluted loss per share for the second fiscal quarter
 ended March 31, 2001, compared to $0.16 diluted earnings per share in the same
 quarter last year.
     Second quarter charges totaling $0.02 per share were related to expenses
 associated with the terminated acquisition of IBP, inc.  Additionally,
 previously announced charges totaling approximately $0.05 per share were
 incurred related to the sale of certain swine assets, the product recall and
 the on-going effect of severe winter weather.  Excluding these charges, second
 quarter earnings would have been approximately $0.04 per share.
    Second quarter sales were $1.83 billion compared to $1.79 billion last
 year, an increase of 2.0 percent with a 2.1 percent increase in volume.  Gross
 profits for the second quarter were $216.3 million compared to $297.3 million
 in the same quarter last year with gross margin at 11.8 percent compared to
 16.6 percent last year.
     Diluted earnings per share for the six months of fiscal 2001 were
 $0.09 compared to $0.41 in the same period last year.  Earnings for the six
 months of fiscal 2001 decreased $71.8 million to $20.9 million compared to
 $92.7 million from the same period last year.  Sales for the six months of
 fiscal 2001 and the same period last year were $3.57 billion.
     John Tyson, chairman, president and CEO, said, "The second quarter has
 been one of the toughest in our history due to the lingering winter weather
 effects combined with the on-going low prices for breast meat.  We continue to
 see a shift in our mix toward value-added products that has resulted in
 revenue gains in each of our business segments.  Our focus on growing market
 share in those products will pay off in the future.  Looking ahead to the
 third quarter, we expect to see improving markets, improving costs and
 seasonal volume increases."
     The Company presently identifies segments based on the products offered
 and the nature of customers.  This results in the following reported business
 segments: Food Service, Consumer Products, International, Swine and Other.
 The Company measures segment profit as gross profit less selling expenses.
 Information on segments is as follows (in millions):
 
 
      Second Quarter Segment Review
 
                             Sales by Segment             Segment Profit
 
                            Three Months Ended          Three Months Ended
 
                        March 31,       April 1,      March 31,    April 1,
                           2001           2000          2001         2000
 
     Food Service         $819.9         $813.1         $18.0        $49.9
     Consumer Products     582.1          562.7          14.0         39.3
     International         181.7          171.1          (0.4)        19.8
     Swine                  39.5           38.3           1.9          6.5
     Other                 204.3          205.6          43.7         40.9
     Total              $1,827.5       $1,790.8         $77.2       $156.4
 
     Food Service second quarter sales increased 0.8 percent compared to the
 same period last year, with a 9.4 percent increase in average sales prices
 primarily due to a change in product mix, offset by a 7.8 percent decrease in
 volume.  Segment profit for Food Service decreased $31.9 million from the same
 period last year primarily due to weather-related effects combined with higher
 grain and energy costs and product mix changes.
     Consumer Products second quarter sales increased 3.4 percent compared to
 the same period last year, with a 2.6 percent increase in average sales prices
 and a 0.8 percent increase in volume.  Segment profit for Consumer Products
 decreased $25.3 million from the same period last year primarily due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  In addition, this segment experienced operating
 inefficiencies and inventory losses related to the previously announced
 product recall.
     International second quarter sales increased 6.2 percent compared to the
 same period last year, with a 12.2 percent increase in volume partially offset
 by a 5.3 percent decrease in average sales prices.  Segment profit for
 International decreased $20.2 million from the same period last year due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  Of the $20.2 million decrease, $12.0 million is related
 to Tyson de Mexico, which, in addition to higher energy costs, experienced
 operating inefficiencies following last year's outbreak of Exotic Newcastle
 disease.
     Swine second quarter sales increased 3.1 percent over the same period last
 year, with a 4.5 percent increase in volume partially offset by a 1.1 percent
 decrease in average sales prices.  Segment profit for Swine decreased
 $4.6 million from the same period last year primarily due to market changes.
     Other second quarter sales decreased 0.6 percent from the same period last
 year primarily due to a decrease in Prepared Foods sales.  Other consists
 primarily of the Specialty Products group, the Prepared Foods group, the
 chicken breeding stock subsidiary and other corporate operating activities.
 
 
      Six Months Segment Review
 
                            Sales by Segment              Segment Profit
 
                            Six Months Ended             Six Months Ended
 
                        March 31,       April 1,      March 31,    April 1,
                           2001           2000          2001         2000
 
     Food Service       $1,621.9       $1,637.9        $ 54.8       $119.5
     Consumer Products   1,110.8        1,100.4          52.1         92.4
     International         369.1          358.7           2.1         44.1
     Swine                  77.6           70.4           1.9          5.5
     Other                 391.4          402.1          86.4         62.0
     Total              $3,570.8       $3,569.5        $197.3       $323.5
 
     Food Service six months sales decreased 1.0 percent compared to the same
 period last year, with a 7.9 percent decrease in volume offset by a
 7.5 percent increase in average sales prices primarily due to a change in
 product mix.  Segment profit for Food Service decreased $64.7 million from the
 same period last year primarily due to weather-related effects combined with
 higher grain and energy costs and product mix changes.
     Consumer Products six months sales increased 0.9 percent compared to the
 same period last year, with a 1.3 percent increase in volume partially offset
 by a 0.3 percent decrease in average sales prices.  Segment profit for
 Consumer Products decreased $40.3 million from the same period last year
 primarily due to weather-related effects combined with higher grain and energy
 costs and product mix changes.  In addition, this segment experienced
 operating inefficiencies and inventory losses related to the previously
 announced product recall.
     International six months sales increased 2.9 percent compared to the same
 period last year, with a 5.5 percent increase in average sales prices
 partially offset by a 2.5 percent decrease in volume.  Segment profit for
 International decreased $42.0 million from the same period last year due to
 weather-related effects combined with higher grain and energy costs and
 product mix changes.  Of the $42.0 million decrease, $21.2 million is related
 to Tyson de Mexico, which, in addition to higher energy costs, experienced
 operating inefficiencies following last year's outbreak of Exotic Newcastle
 disease.
     Swine six months sales increased 10.2 percent over the same period last
 year, with a 7.6 percent increase in average sales prices and a 2.5 percent
 increase in volume.  Segment profit for Swine decreased $3.6 million from the
 same period last year primarily due to market changes.
    Other six months sales decreased 2.7 percent from the same period last year
 primarily due to a decrease in Prepared Foods sales.  Other consists primarily
 of the Specialty Products group, the Prepared Foods group, the chicken
 breeding stock subsidiary and other corporate operating activities.
 
 
     The unaudited results are as follows:
 
                             CONSOLIDATED CONDENSED
                              STATEMENTS OF INCOME
                      (In millions except per share data)
 
                                Three Months Ended        Six Months Ended
                               March 31,   April 1,     March 31,   April 1,
                                  2001       2000          2001       2000
 
     Sales                     $1,827.5    $1,790.8     $3,570.8    $3,569.5
     Cost of Sales              1,611.2     1,493.5      3,093.7     2,959.1
     Gross Profit                 216.3       297.3        477.1       610.4
     Expenses:
       Selling                    139.1       140.9        279.8       286.9
       General and
        administrative             45.7        56.5         89.3        92.2
       Amortization                 8.5         8.6         16.9        17.1
     Operating Income              23.0        91.3         91.1       214.2
     Other Expense (Income):
       Interest                    28.8        29.8         55.3        58.5
       Foreign currency
        exchange                   (0.1)       (0.8)         0.9        (0.2)
       Other                        4.3         1.1          4.1         2.7
     Income (Loss) Before
      Income Taxes and
      Minority Interest           (10.0)       61.2         30.8       153.2
     Provision (Benefit)
      for Income Taxes             (3.5)       21.8         10.7        54.6
     Minority Interest             (0.5)        3.7         (0.8)        5.9
     Net Income (Loss)            $(6.0)      $35.7        $20.9       $92.7
 
     Diluted Earnings (Loss)
      Per Share                  $(0.03)      $0.16        $0.09      $ 0.41
     Diluted Average Shares
      Outstanding                 221.4       225.7        222.6       227.0
     Dividends Per Share:
         Class A                 $0.040      $0.040       $0.080      $0.080
         Class B                 $0.036      $0.036       $0.072      $0.072
 
     Sales Growth (Decline)        2.0%       (2.7%)        0.0%       (2.6%)
     Margins: (Percent of
      Sales)
     Gross Profit                 11.8%       16.6%        13.4%       17.1%
     Operating Income              1.3%        5.1%         2.6%        6.0%
     Income (Loss) Before
      Income Taxes and
      Minority Interest           (0.5%)       3.4%         0.9%        4.3%
     Net Income (Loss)            (0.3%)       2.0%         0.6%        2.6%
 
     Effective Tax Rate           35.4%       35.6%        34.7%       35.6%
 
 
                             CONSOLIDATED CONDENSED
                                 BALANCE SHEETS
                     (In millions except per share amounts)
 
     Assets                                     March 31, 2001  Sept. 30, 2000
     Current Assets:
       Cash and cash equivalents                    $ 83.5           $42.9
       Accounts receivable, net of allowance         502.5           508.0
       Inventories                                   958.5           965.1
       Other current assets                           58.6            47.3
     Total Current Assets                          1,603.1         1,563.3
     Net Property, Plant and Equipment             2,092.3         2,140.9
     Excess of Investments over Net Assets
      Acquired                                       921.6           936.8
     Investments and Other Assets                    254.0           200.0
     Total Assets                                 $4,871.0        $4,841.0
 
     Liabilities and Shareholders' Equity
     Current Liabilities:
       Notes payable                                 $81.8           $61.6
       Current portion of long-term debt              73.1           122.7
       Trade accounts payable                        327.4           333.3
       Accrued compensation and benefits             121.6           103.7
       Other accrued liabilities                     266.0           251.5
     Total Current Liabilities                       869.9           872.8
     Long-Term Debt                                1,447.6         1,356.8
     Deferred Income Taxes                           366.7           384.8
     Other Liabilities                                48.1            51.1
     Shareholders' Equity:
       Common stock ($.10 par value)
        Class A-authorized 900 million shares:
        Issued 138 million shares at 3-31-01
         and 9-30-00                                  13.8            13.8
        Class B-authorized 900 million shares:
        Issued 103 million shares at 3-31-01
         and 9-30-00                                  10.3            10.3
        Capital in excess of par value               734.6           734.7
        Retained earnings                          1,719.6         1,715.7
        Other accumulated comprehensive loss         (17.6)           (4.7)
                                                   2,460.7         2,469.7
        Less treasury stock, at cost-
         18 million shares at 3-31-01
          and 16 million shares at 9-30-00           314.6           284.5
        Less unamortized deferred compensation         7.4             9.7
     Total Shareholders' Equity                    2,138.7         2,175.5
 
     Total Liabilities and Shareholders' Equity   $4,871.0        $4,841.0
 
 
                             CONSOLIDATED CONDENSED
                            STATEMENTS OF CASH FLOWS
                            For the Six Months Ended
                                 (In millions)
 
                                                 March 31, 2001  April 1, 2000
     Cash Flows from Operating Activities:
       Net income                                     $20.9          $92.7
       Adjustments to reconcile net income
        to cash provided by operating activities:
         Depreciation                                 130.8          126.7
         Amortization                                  16.9           17.1
         Amortization of deferred compensation          2.3            ---
         Provision for doubtful accounts                0.7           28.4
         Foreign currency exchange                      0.9           (0.2)
         Minority interest                             (0.8)           5.9
         Deferred income taxes                        (15.9)         (18.4)
         Loss on dispositions of assets                 3.9            3.0
         Decrease in accounts receivable                5.9           67.9
         Decrease in inventories                        0.6            1.2
         Decrease in trade accounts payable            (5.9)         (53.4)
         Increase in accrued compensation
          and benefits                                 17.9            8.5
         Net change in other current assets
          and other current liabilities                (6.6)          19.5
     Cash Provided by Operating Activities            171.6          298.9
     Cash Flows from Investing Activities:
       Additions to property, plant and equipment    (106.8)         (94.3)
       Proceeds from disposition of assets             24.3            1.7
       Investment in note receivable                  (66.5)           ---
       Net change in other assets and liabilities       4.2           (4.1)
     Cash Used for Investing Activities              (144.8)         (96.7)
     Cash Flows from Financing Activities:
       Net change in notes payable                     20.2          (43.9)
       Proceeds from long-term debt                   109.2           82.9
       Repayments of long-term debt                   (69.0)        (172.2)
       Purchases of treasury shares                   (30.1)         (50.5)
       Dividends                                      (17.0)         (17.4)
       Other                                            ---            1.0
     Cash Provided by (Used for) Financing
      Activities                                       13.3         (200.1)
     Effect of Exchange Rate Change on Cash             0.5           (1.1)
     Increase in Cash and Cash Equivalents             40.6            1.0
     Cash and Cash Equivalents at Beginning
      of Period                                        42.9           30.3
     Cash and Cash Equivalents at End of Period       $83.5          $31.3
 
     Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the world's
 largest fully integrated producer, processor and marketer of chicken and
 chicken-based convenience foods, with 68,000 team members and 7,000 family
 farmers in more than 100 communities.  Tyson has operations in 18 states and
 16 countries and exports to 79 countries worldwide.  Tyson is the recognized
 market leader in almost every retail and foodservice market it serves.
 Through its Cobb-Vantress subsidiary, Tyson is also a leading chicken breeding
 stock supplier.  In addition, Tyson is the nation's second largest maker of
 corn and flour tortillas under the Mexican Original(R) brand, as well as a
 leading provider of live swine.
     A conference call to discuss the Company's financial results will be held
 at 10:00 a.m. CDT (11:00 a.m. EDT) today.  To listen live via telephone, call
 877-260-8897.  International callers dial 612-332-0819.  No access code is
 required.  The call also will be webcast live on the Internet at
 www.tyson.com/investorrel/publications/confcall.asp.  The webcast will be
 available for replay within two hours of the conclusion of the call.  A
 telephone replay will be available beginning at 1:30 p.m. CDT today through
 May 30 at 800-475-6701.  International callers dial 320-365-3844.  The replay
 access code is 578815.  A spreadsheet of the tables in this release will soon
 be available at www.tyson.com/investorrel/newsinfo/xls/q201.xls.
 
     Forward-Looking Statements.
     Certain statements contained in this communication are "forward-looking
 statements," such as statements relating to growing market share and third
 quarter expected performance.  These forward-looking statements are subject to
 risks, uncertainties and other factors which could cause actual results to
 differ materially from historical experience or from future results expressed
 or implied by such forward-looking statements.  Among the factors that may
 cause actual results to differ materially from those expressed in, or implied
 by, the statements are the following: (i) fluctuations in the cost and
 availability of raw materials, such as feed grain costs; (ii) changes in the
 availability and relative costs of labor and contract growers; (iii) market
 conditions for finished products, including the supply and pricing of
 alternative proteins; (iv) effectiveness of advertising and marketing
 programs; (v) the ability of the Company to make effective acquisitions and
 successfully integrate newly acquired businesses into existing operations;
 (vi) risks associated with leverage, including cost increases due to rising
 interest rates; (vii) risks associated with effectively evaluating derivatives
 and hedging activities; (viii) changes in regulations and laws, including
 changes in accounting standards, environmental laws, occupational, health and
 safety laws; (ix) issues related to food safety, including costs resulting
 from product recalls, regulatory compliance and any related claims or
 litigation; (x) adverse results from ongoing litigation; (xi) access to
 foreign markets together with foreign economic conditions, including currency
 fluctuations; and (xii) the effect of, or changes in, general economic
 conditions.  The Company wishes to caution readers not to place undue reliance
 on any forward-looking statements, which speak only as of the date made.
 Tyson undertakes no obligation to publicly update any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.
     Financial information, such as this news release, as well as other
 historical data and current Company information can now be accessed from the
 Company's web site on the internet at http://www.tyson.com.
     For a copy of this release, call fax-on-demand at (800) 758-5804, ext.
 113769.
 
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 SOURCE  Tyson Foods, Inc.

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