SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) July 11, 1997
Hudson Foods, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE 1-9050 71-0427616
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1225 Hudson Road, Rogers, Arkansas 72756
(Address of principal executive offices)
Registrant's telephone number, including area code (501)636-1100
Not Applicable
(Former name or former address, if changed since last report.)
<PAGE>
Form 8-K
Item 5. Other events.
See attached press release issued by Hudson Foods, Inc. on July 11, 1997.
<PAGE>
Analyst Contact: David Siemens Media Contact: Tom Reynolds
Director of Investor Relations Secretary/Treasurer
(501) 631-5123 (501) 631-5177
HUDSON FOODS, INC. ANNOUNCES RESTRUCTURING CHARGE, LOWER EARNINGS
EXPECTATIONS
ROGERS, Ark., July 11 - Hudson Foods, Inc. (NYSE:HFI) today announced a
restructuring charge resulting from a reorganization of its International
Division. The charge of approximately $20.0 million ($33.3 million pre-tax) will
negatively affect the Company's operating results for the third quarter and will
amount to 66 cents per share. Additionally, the Company anticipates that it will
not meet analysts' expectations before inclusion of the third quarter charge.
Third quarter earnings per share before the charge are expected to be in the 16
to 18 cents per share range and after the charge the Company expects a loss of
48 to 50 cents per share. The less than expected earnings before the charge are
mainly due to lower than anticipated market prices for the Company's chicken
products. Nine month earnings per share before inclusion of the charge are
expected to be in the 68 to 70 cents per share range and a profit of 2 to 4
cents per share after the charge.
"The restructuring charge resulted from a comprehensive reorganization of
our International Division, with particular emphasis placed on structural
changes to our business in Russia," said Michael T. Hudson, president and chief
executive officer. "In light of rapidly changing market forces in Russia,
including significantly increased tariffs, the Company determined it to be in
our best interest to reorganize our market distribution system in the country,
including the restructuring of our alliance with our Russian customers.
Associated with these changes, the Company has recognized that certain
receivables and other costs related to the establishment of viable business
operations in Russia will not be recoverable. The reorganization will allow us
to grow our customer base by distributing our products into the widespread
geographic markets of Russia. We still believe there are business opportunities
in Russia and we feel confident, under existing tariff laws, that this
restructuring will allow our International Division to effectively compete in
the Russian marketplace."
Hudson Foods, the nation's 3rd largest publicly traded poultry company,
sells a variety of chicken, turkey, beef and pork products under the "Hudson,"
"Delightful Farms," "Pierre" and "Schweigert" brand names. The Company's
financial information may be found at www.hudsonfoods.com on the Internet, or by
calling PR Newswire's Company News On-Call fax service at 800-758-5804, ext.
111748.
FORWARD LOOKING STATEMENT
Certain statements in this release constitute forward-looking statements
and involve risks, uncertainties and other factors which may cause the actual
performance of the Company to be materially different from the performance
expressed or implied by such statements. Such factors include, among others, the
possibility of tariff law changes or other restrictions directly affecting sales
to Russia or the repatriation of revenues from such sales, changes in the
Russian marketplace, political and social instability, difficulties in assessing
credit risks in sales to Russian customers and in collecting amounts owed,
fluctuations in foreign exchange rates, and other risks commonly encountered in
international trade.
