Tyson 4th-Quarter Earnings Drop 56%

Tyson Foods Inc., the world’s largest chicken producer, reported a 56% drop in fiscal fourth-quarter earnings to $18 million, or 8 cents a share, as revenue declined 2% to $1.78 billion. The company cited industry oversupply for the weak results, which matched analysts’ expectations. Tyson also warned that first-half 2001 results would be weaker than expected. The Springdale, Ark.-based company had warned in July it would post poor results in its fourth quarter and first quarter of fiscal 2001. The company now expects earnings in the range of 8 cents to 12 cents a share in each of its first and second quarters of fiscal 2001. It had earned 25 cents and 16 cents in the year-ago first and second quarters, respectively. Tyson shares closed off 50 cents at $13.75 on the New York Stock Exchange. Company executives said Tyson will move away from supplying chicken to competitors to make finished chicken products. It will instead cut output and concentrate on keeping its chicken supplies in-house and meet consumer demand for any desired products.