Milling & Baking News Corporate Profiles - November 2013 - (Page 128)

Company Overview Tyson Foods, Inc. Favorable supply/demand situation, prepared foods' focus drive company T yson Foods, Inc. has suffered through several challenging years as a result of high animal feed costs and plentiful protein supplies, but as input costs have moderated and animal protein supplies have declined, the company is poised to capitalize. During the third quarter of fiscal 2013, ended June 29, Tyson Foods' net income surged 236% on sales of $8.7 billion. It was a significant step forward for the Springdale, Ark.-based company and the beginning of a trend Donnie Smith, president and chief executive officer, believes will continue. "... We expect the fourth quarter to look pretty close to the third quarter, and we expect that performance to continue on average through 2014," Mr. Smith said. "It took us a few years to turn this business around, but I like where we are and I like the momentum we have." Tyson Foods is the largest meat and poultry processor in the world and consists of four business units: Beef, Chicken, Pork and Prepared Foods. Forty-one per cent of the company's sales during fiscal 2012, which totaled $33.3 billion, were generated by the Beef business. Chicken accounted for 35% of sales, Pork 14% and Prepared Foods 10%. During an average week the company will process 41.4 million chickens, 132,000 head of cattle and 132,000 hogs at its 104 plants that are located throughout the United States and the world. While the company recently has profited from favorable market dynamics, it also has worked to build its Prepared Foods business in an effort to add greater value to the raw materials it produces. Company management has been open about the fact it wants to expand its prepared foods offerings. While the Tyson name is synonymous with animal protein, the company is also one of the largest tortilla manufacturers in the United States, and the company has been working to extend its presence in the market for Mexican foods. In February, Tyson Foods acquired Don Julio Foods, Clearfield, Utah, a manufacturer of flour and corn tortillas, potato chips, tortilla chips and pretzels. Tyson Mexican Original is the second largest manufacturer of Chief executive officer - tortillas in the United States. A majority of its sales are currently with food service customers, but the acquisition of Don Julio is expected to expand the company's reach to grocery stores. A few weeks after the acquisition of Don Julio Foods, Dennis Leatherby, Tyson's chief financial officer, told attendees at the Goldman Sachs Agribusiness Conference that expanding the company's value-added offerings was a goal. In June, Tyson Foods, acquired Circle Foods L.L.C., San Diego, from Claridge, Inc., a private equity investment company headquartered in Montreal. Circle Foods is a manufacturer of frozen and refrigerated handheld Mexican foods, uncooked tortillas and Indian flatbreads. Terms of the acquisition were not disclosed. Circle Foods manufactures products under the Nuevo Grille, Tortillaland and Rotiland brands. The company has a 159,000-square-foot facility in San Diego and employs approximately 600. The plant produces burritos, chimichangas, enchiladas, quesadillas, tacos and tamales, as well as tortillas and Indian flatbreads. CP Top brands - Any'Tizers Corn King Grilled & Ready Tyson Wright Brand 2012 global sales - Donnie Smith 128 \ November 2013 $33.3 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013