February 6, 2006

Tyson expects value-added sales of US$12 billion in 2006

Tyson Foods Inc expects 2006 value-added sales to increase by US$900 million from 2005 and said its future use of cash will be to evaluate acquisitions, with an emphasis on international expansion.

On Friday, the poultry company said it expects 2006 value-added sales of US$12 billion. In 2005, value-added products made up 42.7 percent, or US$11.1 billion of Tyson's US$26 billion in total sales.

Tyson, which said its inability to access major Asia markets in 2005 resulted in an estimated loss of US$800 million in beef export sales, expects export sales to improve in the last two quarters of 2006. The company also hopes to establish in-country presence in at least one additional foreign market in 2006.

Tyson expects capital expenditures of US$600 million to US$650 million for the year.

Also on Friday, Tyson said it re-elected 10 members of the board, including five independent directors.