Meat & Poultry -- December 2013 - 10

Business Notes

Lochner to retire, Tyson shows strong fourth quarter

I

n reporting what company officials

product development, and environ-

and 2013 was the best year in com-

called a "great" fourth quarter that

mental, health and safety services.

pany history in terms of record sales

propelled Tyson Foods to record sales

Lochner has held numerous po-

and earnings per share," Smith said.

and earnings per share in fiscal 2013,

sitions within the company, includ-

"The company achieved these re-

company officials also announced the

ing senior group vice president for the

sults while buying back $550 million

retirement of COO, Jim Lochner. Af-

Fresh Meats division, and senior group

in stock, paying more than $100 mil-

ter spending more than 30 years with

vice president over Margin Optimi-

lion in dividends, continuing to build

IBP and then Tyson, Lochner will re-

zation, Purchasing and Logistics. He

our operations in China and growing

tire in September 2014.

joined Tyson in 2001 as part the ac-

our prepared-foods business through

quisition of IBP inc., where Lochner

acquisitions and by entering new prod-

had worked since 1983. There are no

uct categories.

plans to fill the COO position, according to Smith.

"A year ago we outlined our expectations for growth," he added. "We

Also retiring in 2014 is Donald

said you should expect top-line sales

"Buddy" Wray, special assistant to

to grow around 3 percent to 4 per-

the president and CEO. Wray is cred-

cent annually. In fiscal 2013, we grew

ited with helping the company widen

sales by 4 percent. This time last year,

its offerings from fresh chicken to in-

we projected earnings for fiscal 2013

clude prepared foods, such as chick-

would be roughly flat to the previous

en nuggets and patties, in the 1970s

two years but would grow at a rate of

and 1980s.

at least 10 percent a year in 2014 and

After initially retiring in 2000 from

beyond.

his role as COO, Wray returned to the

we grew adjusted earnings from con-

president and special assistant to the

tinuing operations by 15 percent this

president and CEO, Donnie Smith.

year. Sales growth from value-added

Wray also served on the company's

products was almost 6 percent, against

board of directors from 1994 to 2003.

an aggressive goal of 6 percent to 8

As for Tyson's performance, net

Jim Lochner

"By overcoming many challenges,

company in 2009 as executive vice

percent growth per year. And finally,

income in the fourth quarter ended

we set a goal of growing sales from in-

Lochner has served as Tyson's

Sept. 28 was $261 million, equal to 70

ternational production by 12 percent

COO since 2009. He is moving to

cents per share on the common stock,

to 16 percent a year, and we beat that

support the company's fresh-meat

up 41 percent from $185 million, or 51

goal with 20 percent growth."

business in Dakota Dunes, SD. Loch-

cents per share, in the same quarter a

Operating income wit hin t he

ner will serve in an advisory capacity

year ago. For the full year, net income

Chicken segment during fiscal 2013

through 2017 following his retirement.

was $778 million, or $2.12 per share,

totaled $646 million, up 33 percent

As COO, Lochner's responsibilities

up 33 percent from $583 million, or

from fiscal 2012. Sales totaled $12,296

$1.58 per share, in fiscal 2012.

million, up 8 percent from $11,368

included oversight of Tyson's poultry
and fresh meat production operations,

Net sales during the fourth quarter

as well as food processing, interna-

of fiscal 2013 increased 7 percent to

Tyson officials said sales volumes

tional divisions and renewable prod-

$8,894 million from $8,315 million.

grew behind increased domestic and

ucts. He also led divisions that support

For the full year, sales were up 4 per-

international production driven by

the company's business units through

cent, at $34,374 million.

stronger demand for the company's

transportation, information services,

10

"We had a great fourth quarter,

* Meat&Poultry * December 2013 * www.MeatPoultry.com

million.

chicken products.
http://www.MeatPoultry.com
Meat & Poultry -- December 2013

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