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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 31, 1998
Tyson Foods, Inc.
__________________________________________________________________________
(Exact Name of Registration as Specified in Charter)
Delaware 0-3400 71-0225165
________ ______ __________
(State or Other (Commission File Number) (IRS Employer
Jurisdiction Identification No.)
of Incorporation)
2210 West Oaklawn Drive, Springdale, Arkansas 72762
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (501) 290-4000
Not Applicable
___________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
On August 31, 1998, the Registrant issued a Press Release entitled
"Tyson Board of Directors Approves Combined Financial Program," a copy of
which is attached hereto as Exhibit 99.1 and made a part hereof.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibits
99.1 Press Release, dated August 31, 1998, of Tyson Foods, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TYSON FOODS, INC.
By:/s/ Wayne Britt
_____________________________
Wayne Britt
Chief Financial Officer
September 4, 1998
<PAGE> Exhibit 99.1
TYSON BOARD OF DIRECTORS APPROVES COMBINED FINANCIAL PROGRAM
Springdale, AR (August 31, 1998) - Tyson Foods, Inc. (NYSE:TSN) announced
today that on Friday its Board of Directors met and approved a program
consistent with its July 27, 1998 restructuring announcement. The Company
expects to complete the combined program, which includes restructuring of
certain operations resulting in impairment write-downs of related assets
and certain other charges (collectively the "Program") totaling $196
million during its fourth quarter ending October 3, 1998.
The Program was adopted in part to rationalize the Company's poultry
production facilities following its recent acquisitions, including Hudson
Foods, Inc. The Company has recently announced the closure of two poultry
processing plants and has slated for closure or consolidation certain
additional facilities. The Company also plans to close and sell other
excess poultry assets including feedmills, an office facility and farms.
Continued operation of certain of these processing facilities would require
substantial capital expenditures to insure continued compliance with
regulatory requirements. Further, the Company intends to continue the
rationalization of its seafood assets, consisting mainly of fishing
vessels. This rationalization may include divestiture, redeployment, and
other possible business combinations, exploring all alternatives in an
orderly fashion.
The Company will record Restructuring and Related Asset Impairment Charges
in its fourth quarter totaling approximately $143 million. In addition the
Company will incur other charges in the fourth quarter totaling
approximately $53 million, $30 million of which is reserves for credit,
inventory, currency and political risks in the Company's export business to
Russia and Asia, both of which have been adversely affected by continuing
economic problems.
The Company expects the Program to increase, when fully implemented,
combined after-tax income $12 to $15 million annually. This increase is
expected to be partially recognized during the Company's fiscal year ending
October 2, 1999 and fully recognized in succeeding years.
The Program will require additional capital expenditures of approximately
$21 million to fund facility upgrades, expansions and production
consolidation costs. The anticipated three year net benefit to the
Company's cash flow, including anticipated proceeds from the sale of
certain assets identified for disposition, is approximately $130 million.
Leland Tollett, the Company's Chairman and Chief Executive Officer stated:
"This program will improve Tyson's operating performance and
competitiveness. We are focusing on our core business to create long-term
shareholder value and believe this restructuring program improves our
ability to more cost-effectively serve the marketplace."
Tyson Foods, Inc. is the world's largest fully-integrated producer,
processor and marketer of chicken and poultry-based food products.
This press release contains forward-looking statements based on
management's current views and assumptions. Actual events may differ.
Please refer to the "Cautionary Statements Relevant to Forward-Looking
Information" on pages 11 and 12 of the Company's 1997 Annual Report on Form
10-K for a discussion of these matters.
For further information contact Louis Gottsponer, Tyson's Director of
Investor Relations, at 501-290-4826.
