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Tyson's Chicken Segment Benefiting from Changes

Tyson Foods Inc. reports that structural changes and improved market conditions are having a positive effect on its chicken business.

Donnie Smith, Tyson's senior group vice president for poultry and prepared foods, said at the Stephens Inc. Spring Investment Conference, "We have modified many of our business practices, and our people have really embraced making these changes. I think we'll have a stronger Q3 in our chicken segment than we thought a month ago," referring to statements made in Tyson's second quarter earnings call on May 4, 2009.

Smith said that, while the company is better positioned to operate more effectively in the current environment, higher input costs and demand for other proteins could have an impact later in the year.

"My long-term focus in chicken is on our 'back to basics' approach which is serving us well," he said. "We have a great, hard-working team, and they're headed in the right direction. It feels good to see how far we've come in a fairly short time, and we will continue to focus on improving our business and creating shareholder value."
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