<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): April 27, 1998
Tyson Foods, Inc.
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(Exact Name of Registration as Specified in Charter)
Delaware 0-3400 71-0225165
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
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
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
On April 27, 1998, the Registrant issued a Press Release entitled
"Tyson Foods, Inc. Reports Second Quarter and Six Months Results," 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 April 27, 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
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Wayne Britt
Chief Financial Officer
April 27, 1998
<PAGE> Exhibit 99.1
TYSON FOODS, INC. REPORTS SECOND QUARTER AND SIX MONTHS RESULTS
Springdale, Arkansas--Tyson Foods, Inc. (NYSE:TSN), today announced
operating results for the second quarter and first six months of fiscal
year 1998 for the period ended March 28, 1998.
Diluted earnings per share for the second quarter of fiscal 1998 were $.10
compared to $.22, down 55 percent from the same period last year. Gross
profits increased 2.5 percent to $268.8 million from last year's $262.2
million and gross margin decreased 230 basis points to 14.4 percent from
last year's 16.7 percent.
Sales for the second quarter of fiscal 1998 were $1.87 billion compared to
$1.57 billion last year, an increase of 18.8 percent. The increase in sales
is mainly due to the acquisition of Hudson Foods on January 9, 1998,
resulting in an overall increase of 27.3 percent in total volume partially
offset by a 6.7 percent decrease in average sales prices. For a benchmark,
the average Georgia Dock price decreased 10.85 percent over the same period
last year.
Diluted earnings per share for the first six months of fiscal 1998 were
$.31 compared to $.42, down 26.2 percent from the same period last year.
Gross profits increased 3.7 percent to $529.5 million from last year's
$510.6 million and gross margin decreased 90 basis points to 15.6 percent
from last year's 16.5 percent.
Sales for the first six months of fiscal 1998 were $3.39 billion compared
to $3.10 billion last year, an increase of 9.3 percent. The increase in
sales is mainly due to the acquisition of Hudson Foods, resulting in an
overall 15.9 percent increase in total volume partially offset by a 5.7
percent decrease in average sales prices. The average Georgia Dock price
decreased 11.35 percent over the same period last year. Included in general
and administrative expense for the first six months is a charge of $6
million for penalties and costs associated with the January 12, 1998
settlement with the Office of Independent Counsel in connection with the
former Secretary of Agriculture Michael Espy investigation.
"We are pleased with the progress we've made in the assimilation of Hudson
Foods and feel we are on track to capture the synergies we stated at the
CAGNY Conference in February," said Leland Tollett, Chairman and CEO.
"However, we are not pleased with the operating results for the quarter,
which were impacted by the excess supply of all meat proteins, weakness in
the export markets and the quality of the Hudson Foods sales mix we
inherited. Nevertheless, we are encouraged by our prospects for the
remainder of the year. Poultry prices are beginning to improve and there
has been a significant reduction in both corn and soybean meal prices."
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.
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TYSON FOODS, INC.
News Release
April 27, 1998
Page 2 of 5
The unaudited results are as follows:
(In millions except per share data)
Three Months Ended March 28, 1998 March 29, 1997
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Sales $1,870.8 $1,574.3
Cost of Sales 1,602.0 1,312.1
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Gross Profit 268.8 262.2
Expenses:
Selling 155.2 125.2
General and Administrative 33.6 25.3
Amortization 8.3 6.9
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Operating Income 71.7 104.8
Other Expense (Income):
Interest 38.0 26.2
Other (3.2) 2.1
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Income Before Taxes on Income 36.9 76.5
Provision for Income Taxes 13.6 28.3
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Net Income $ 23.3 $ 48.2
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Diluted Earnings Per Share $0.10 $0.22
Diluted Average Shares Outstanding 232.4 219.0
Dividends Per Share:Class A $0.0250 $0.0250
Class B $0.0225 $0.0225
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Sales Growth (Decline) 18.8% (0.8%)
Margins: (Percent of Sales)
Gross Profit 14.4% 16.7%
Operating Income 3.8% 6.7%
Income Before Taxes on Income 2.0% 4.9%
Net Income 1.2% 3.1%
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TYSON FOODS, INC.
News Release
April 27, 1998
Page 3 of 5
The unaudited results are as follows:
(In millions except per share data)
Six Months Ended March 28, 1998 March 29, 1997
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Sales $3,391.6 $3,102.2
Cost of Sales 2,862.1 2,591.6
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Gross Profit 529.5 510.6
Expenses:
Selling 280.8 250.3
General and Administrative 64.9 48.8
Amortization 14.2 13.7
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Operating Income 169.6 197.8
Other Expense (Income):
Interest 65.2 55.1
Other (3.8) (39.4)
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Income Before Taxes on Income 108.2 182.1
Provision for Income Taxes 40.0 89.3
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Net Income $ 68.2 $ 92.8
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Diluted Earnings Per Share $0.31 $0.42
Diluted Average Shares Outstanding 223.4 219.2
Dividends Per Share:Class A $0.0500 $0.0450
Class B $0.0450 $0.0405
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Sales Growth (Decline) 9.3% (1.0%)
Margins: (Percent of Sales)
Gross Profit 15.6% 16.5%
Operating Income 5.0% 6.4%
Income Before Taxes on Income 3.2% 5.9%
Net Income 2.0% 3.0%
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TYSON FOODS, INC.
News Release CONSOLIDATED CONDENSED
April 27, 1998 BALANCE SHEETS
Page 4 of 5 (In millions except per share amounts)
Assets March 28, 1998 September 27, 1997
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Current Assets:
Cash and cash equivalents $ 34.4 $ 23.6
Accounts receivable 769.9 617.8
Inventories 1,151.6 886.1
Assets held for sale 125.2 6.2
Other current assets 53.8 38.8
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Total Current Assets 2,134.9 1,572.5
Net Property, Plant and Equipment 2,389.5 1,924.8
Excess of Investments over
Net Assets Acquired 1,032.2 731.1
Investments and Other Assets 238.2 182.6
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Total Assets $5,794.8 $4,411.0
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Liabilities and Shareholders' Equity
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Current Liabilities:
Notes payable $ 56.3 $ 37.3
Current portion of long-term debt 57.9 94.6
Trade accounts payable 342.6 290.3
Other accrued liabilities 467.4 298.8
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Total Current Liabilities 924.2 721.0
Long-Term Debt 2,249.9 1,558.2
Deferred Income Taxes 553.1 506.1
Other Liabilities 33.6 4.2
Shareholders' Equity:
Common stock ($.10 par value)
Class A-authorized 900 million shares:
Issued 137.9 million shares at 3-28-98 and
119.5 million shares at 9-27-97 13.8 11.9
Class B-authorized 900 million shares:
Issued 102.7 million shares at
3-28-98 and 9-27-97 10.3 10.3
Capital in excess of par value 740.7 379.1
Retained earnings 1,448.3 1,390.8
Currency translation adjustment (2.1) (2.5)
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2,211.0 1,789.6
Less class A treasury stock, at cost-
9.0 million shares at 3-28-98
and 8.8 million shares at 9-27-97 174.7 165.6
Less unamortized deferred compensation 2.3 2.5
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Total Shareholders' Equity 2,034.0 1,621.5
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Liabilities and Shareholders' Equity $5,794.8 $4,411.0
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TYSON FOODS, INC. CONSOLIDATED CONDENSED
News Release STATEMENTS OF CASH FLOWS
April 27, 1998 For the Six Months Ended
Page 5 of 5 (In millions)
March 28, 1998 March 29, 1997
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Cash Flows from Operating Activities:
Net income $ 68.2 $ 92.8
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation 114.0 101.5
Amortization 14.2 13.7
Deferred income taxes (23.9) (3.7)
(Gain) loss on dispositions of assets (4.0) (39.0)
(Increase) decrease in accounts receivable (48.3) 39.6
(Increase) in inventories (56.2) (7.9)
Increase in trade accounts payable 1.6 8.2
Net change in other current assets and
other current liabilities 88.9 47.9
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Cash Provided by Operating Activities 154.5 253.1
Cash Flows from Investing Activities:
Net cash paid for acquisitions (257.4)
Additions to property, plant and equipment (150.5) (121.9)
Proceeds from the sale of property, plant
and equipment 12.1 189.1
Net change in other assets and liabilities (23.1) (36.9)
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Cash (Used for) Provided by Investing Activities (418.9) 30.3
Cash Flows from Financing Activities:
Net change in notes payable (66.0) (38.5)
Proceeds from long-term debt 780.2 79.4
Repayments of long-term debt (419.6) (226.4)
Purchase of treasury shares (9.8) (25.8)
Other (9.4) (8.5)
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Cash Provided by (Used for) Financing Activities 275.4 (219.8)
Effect of Exchange Rate Change on Cash (0.2) 0.2
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Increase in Cash and Cash Equivalents 10.8 63.8
Cash and Cash Equivalents at Beginning of Period 23.6 36.6
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Cash and Cash Equivalents at End of Period $ 34.4 $ 100.4
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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.
