Tyson Names New CEO, Loses $455M

Tyson Foods Inc. of Springdale said its board of directors chose Donnie Smith, its senior group vice president of poultry and prepared foods, as its next president and CEO.

The announcement was made on Nov. 19. Smith took over the position immediately.

Leland Tollett, a former Tyson CEO, had been working as interim CEO while the meat processor searched for a permanent replacement for Richard Bond, who resigned the post in January. Tyson said Tollett will continue “in the coming months” assisting Smith in the transition.

Tollett will also help Jim Lochner, Tyson’s senior group vice president of fresh meats, who was named the same day as the company’s new chief operating officer.

On Nov. 23, the company said it had a net loss of $455 million for its fourth quarter, which ended Oct. 3, compared with net income of $48 million for the same quarter a year prior.

“The recent disruptions in global credit and other financial markets and deterioration of economic conditions resulted in a significant increase in our discount rate used in the goodwill valuation, which led to partial impairment of our Beef segment’s goodwill,” the company said in its earnings statement.

Later that day, the company declared the quarterly dividend of 4 cents per share on Class A common stock and 36 cents per share on Class B common stock, payable on March 15, 2010 to shareholders of record at the close of business on March 1, 2010.

Tyson Foods, the world’s largest meat processor, has faced challenges to its business in the past two years, particularly in its chicken segment, which has faced a market dogged by higher feed costs and product oversupply.