SPRINGDALE, Ark., May 12, 2011 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) today announced that its board of directors has reactivated a program, effective immediately, to repurchase up to approximately 22.5 million shares of Tyson's Class A common stock.
"We have confidence in our company's performance and are taking this opportunity to return capital to shareholders," said Donnie Smith, Tyson's president and chief executive officer. "For the past several years, our key priorities for using our cash were to pay down debt and to reinvest in our business. We have made significant progress on these efforts, and they will continue to be a focus. However, given the weakness in our share price, along with our strong liquidity, we believe accelerating the repurchase of shares is also an appropriate use of cash at this time."
The program permits the company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the corporation to make any repurchases at any specific time or situation. The timing and extent to which the company repurchases its shares will depend upon, among other things, market conditions, liquidity targets, the company's debt obligations, and regulatory requirements. The company intends to begin repurchasing shares during this fiscal third quarter; however, the amount to be repurchased during this quarter is expected to be less than 25% of the total authorization. Decisions to repurchase additional shares in subsequent quarters will also be made based upon the factors identified above.
The program may be suspended or discontinued at any time. As of May 10, 2011, Tyson had approximately 309.5 million Class A shares outstanding.
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 100 countries. The company has approximately 115,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
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Certain information contained in this news release may constitute forward-looking statements, such as statements relating to projected amount of repurchased stock. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.
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