Sandhusker
Well-known member
FAYETTEVILLE, Ark. (AP) - Tyson Foods Inc., the world's largest meat producer, said Friday it plans to spend up to $650 million on capital expenditures and look into overseas acquisitions, despite a slip in earnings.
"Without a doubt, we faced our share of challenges in 2005, but we've also seen strong indicators that show our strategy is working," John Tyson told shareholders in Fayetteville for their annual meeting.
On Monday, Springdale-based Tyson said first-quarter earnings fell 19 percent to $39 million, and the company lowered its earnings guidance for 2006 to between 50 cents and 80 cents per share, down from between 95 cents and $1.25 per share.
The company reiterated its financial plans, saying it still plans to spend between $600 million and $650 million on capital expenditures.
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I have a question for the packer backers; If higher profits by the packers equate into higher cattle prices, where do the funds for capital expenditures come from? Shouldn't that extra money already be in producer's pockets?
"Without a doubt, we faced our share of challenges in 2005, but we've also seen strong indicators that show our strategy is working," John Tyson told shareholders in Fayetteville for their annual meeting.
On Monday, Springdale-based Tyson said first-quarter earnings fell 19 percent to $39 million, and the company lowered its earnings guidance for 2006 to between 50 cents and 80 cents per share, down from between 95 cents and $1.25 per share.
The company reiterated its financial plans, saying it still plans to spend between $600 million and $650 million on capital expenditures.
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I have a question for the packer backers; If higher profits by the packers equate into higher cattle prices, where do the funds for capital expenditures come from? Shouldn't that extra money already be in producer's pockets?