Tyson Reports “Misappropriation” Of Funds By Beef Supplier

Tyson Finney Co., Kansas facility
Tyson Finney Co., Kansas facility
(File)

Tyson Foods filed corrected financial results on Monday with the Securities and Exchange Commission for its beef segment for fiscal years 2017 through 2020. The report to the SEC – in Form 8-K – specifies that Tyson is reporting “misappropriation of company funds” by one of its beef suppliers.

An internal review of the supplier’s accounts is underway, Tyson said, with assistance of outside advisors. That review determined the supplier made “misrepresentations regarding the number of cattle the supplier purchased on behalf of the company’s beef segment.” Tyson said in the Form 8-K that its live cattle inventory was overstated by $285 million.

However, Tyson’s investigations indicate the resulting losses on their books is isolated to one cattle supplier who represented about 2% of the cattle supplied to Tyson each year from 2017 to 2020. Further, Tyson stated in the Form 8-K the losses do not have a material impact on Tyson’s financial results for the years examined. The internal review is ongoing.

Tyson also said in the filing its investigation found “no evidence that the company benefitted from the supplier’s unlawful conduct or that anyone at the company took steps to alter financial statements to hide the transactions resulting from the supplier’s unlawful acts.”

Tyson also expects to pursue restitution for losses to date. "The Company anticipates that, despite the corrections to previously issued financial statements, general trends in growth and operating profit metrics will remain unaltered, operating cash flow will be largely unaffected, liquidity will not change and the Company will remain in compliance with all debt covenants," it said.

Tyson’s independent registered public accounting firm is PricewaterhouseCoopers LLP. As a publicly traded company, Tyson is required to make quarterly earnings reports to the Securities and Exchange Commission.

son

 

 

 

Latest News

BT_Red_Angus_Bulls
Bull Breeding Soundness Evaluations

Before bulls are turned out this spring a complete breeding soundness evaluation (BSE) should be conducted by a veterinarian, including a physical examination, reproductive tract examination, and semen evaluation.

Mushrush_Argentina_Heifers
Keeping the First Calf Heifers on Track

Heifers conceiving early in their first breeding season will have increased lifetime production and efficiency. It is critical heifers attain enough weight to initiate their first estrous before the onset of breeding.

Stepped-Up Basis Repeal Would Be Detrimental to Ranches

Study says this tax increase, whether via tax at death or carryover of basis, will have negative impacts on family-owned businesses, US gross domestic product, and job creation both in the immediate and long term.

Nutrition Communications Workshop in Iowa

The Iowa Beef Industry Council (IBIC) recently hosted a nutrition communications workshop for dietetic graduate students enrolled in the University of Iowa’s Master of Clinical Nutrition Program.

Wendy's Corporate Responsibility Efforts and New Goals

Wendy's will focus on responsible sourcing, sustainable packaging, greenhouse gas reduction and increasing diversity within its leadership, management, and franchisees.

World Bank Expects Commodity Prices to Stay Firm on Economic Growth

Global commodity prices are expected to stay firm around current levels in 2021 after recovering in the first quarter buoyed by strong economic growth, the World Bank said on Tuesday.