Tyson: Efforts Are ?Paying Off?

Tyson Foods Inc. Chairman John Tyson and CEO Richard L. Bond were focused on the future during the 44th Annual Meeting of the Shareholders at the Northwest Arkansas Convention Center in Springdale.
“We’re not going to dwell on the negatives,” Tyson said. “2006 is over and there’s a lot of positives as we’ve taken steps in the right direction and our business is getting back on track.”
Bond, who took over as CEO when Tyson stepped down in May, credited the company’s progress to employee efforts toward a $200-million plus cost management initiative. Original plans called for only about $110 million in cuts.
“We have implemented those measures and it’s already showed up on our bottom line,” Bond said. “I’ve been truly impressed with our Tyson team.”
In 2006, John Tyson received a $1.17 million salary with $673,363 in “other compensation” and Bond received a salary of $1.14 million with $474,609 in “other compensation.” None of the company’s top executives received a bonus in their annual compensation for 2006, according to filings with the SEC (in 2005, John Tyson’s bonus was $3.24 million and Bond’s was $1.38 million).
Tyson Foods’ profit increased 46 percent for the first quarter of 2007, compared to last year.
Tyson earned $57 million, or 16 cents a share. Last year, the company earned $39 million or 11 cents a share.
For the three months ended Dec. 30, operating income was $145 million, compared to $110 million for the same period last year. Revenue increased 2 percent, from $6.45 billion last year to $6.56 billion.
Cost-cutting efforts also fueled the profit increase. Bond’s Cost Management Initiative shaved $44 million from administrative expenses. The final goal is to save $200 million.
“Our immediate goal was to return to profitability, and I am pleased to say we have accomplished our objective, and through the efforts and sacrifices of our team members, we delivered our strongest quarter in 15 months,” Bond said.
Tyson affirmed its previous outlook for 2007, estimating earnings per share in the range of 50 cents to 80 cents.