Earnings Call Excerpt
Tyson Foods, Inc. (TSN)
Q2 2006 Earnings Conference Call
May 1, 2006, 9:00 a.m. EST
Executives
Dennis Leatherby - Interim Chief Financial Officer, Senior Vice President of Finance and Treasurer
Greg W. Lee - Chief Administrative Officer and International President
Richard L. Bond - President and Chief Operating Officer
John Tyson - Chairman and Chief Executive Officer
Ruth Ann Wisener - Vice President, IR and Assistant Secretary
Analysts
Farha Aslam - Stephens Inc.
Pablo Zuanic - J.P. Morgan
Timothy Ramey - D. A. Davidson & Co.
Christine Mccracken - Ftn Midwest Securities Corp.
John Mcmillin - Prudential
David Nelson - Credit Suisse First Boston
Operator
Good morning. Welcome to the Q2 Tyson Foods Earning Release Conference Call. (Operator instructions). I would like to turn the conference over to Ms. Ruth Ann Wisener, ma’am you may begin.
Ruth Ann Wisener
Good morning and thank you for joining us today for Tyson Foods Q2 Conference Call. With me today are John Tyson our Chairman and CEO, Rick Bond our President and Chief Operating Officer, Greg Lee our Chief Administrative Officer and International President, and Dennis Leatherby our Treasurer and Interim Chief Financial Officer.
Before we move on to discuss the operating performance for the quarter, I would want to remind everyone that some of the things we talk about today may include forward-looking statements. That means those statements are going to be based on our view of the world as we know it today and that means things can change. So I would encourage you to look at today’s press release for a discussion of the risk that could affect our business. Now I am going to turn things over to John Tyson.
John Tyson
Good morning everybody. Thanks Ruth Ann. I would like to thank everyone for joining us on the call again today and I’m looking forward to discussing our business with you. I want to especially thank our Tyson team members who are making a difference out there in running our business and working in communities where we live and work, to all our shareholders, our friends out there who support our company.
As we have said, our second quarter was extremely difficult; our beef, chicken and pork segments were all negatively impacted by excess protein. Our beef segment also struggled against very tight cattle markets and continued interruptions in access to export markets. Those factors prohibited us from profiting on what we call the spread due to higher live cattle prices versus lower boxed beef prices. Chicken segment had increased sales volume and generated slightly positive results even though the average sales prices were lower due to price mix, basically leg quarter values coming down and breast meat values. Our value added strategy inside our chicken segment allowed us to stay in positive territory.
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