Tyson Sets Charges For Asia-Related Cuts

Tyson Foods Inc. said it will record $196 million in fiscal fourth- quarter charges as it streamlines production at its poultry plants and accounts for exposure to troubled Russian and Asian economies, a figure in line with analyst expectations. The Springdale, Ark.-based poultry processor, whose fourth quarter ends Oct. 3, said last month it will close plants, cut its work force and write down goodwill. Tyson said in July it would record $143 million in restructuring costs and write-downs and an additional $53 million in other charges, including $30 million in reserves for credit, inventory, currency and political risk in the company’s export business to Russia and Asia. Russia and Japan are key destinations for dark meat chicken, which is less popular than white meat in the United States and more difficult to sell. The charges will likely result in a loss for the fourth quarter, but not necessarily for the full year, Tyson said. Some analysts have cut their earnings expectations for Tyson in recent days on concerns about the level of exposure to Russia, where currency devaluations have sent consumers running to banks instead of grocery stores. Tyson’s shares fell $1.13 to close at $16.50 on the NYSE.