Shares of Tyson foods are down 9.2% to $20 in early trading Wednesday after the company told investors it now expects full-year 2007 EPS of $0.72-0.80, down from its previous guidance of $0.82-0.90."The fourth quarter is turning out to be more challenging than expected. Our beef business has been affected by higher than expected live cattle costs and a decline in beef revenues," CEO Richard Bond will tell investors later today at the Lehman Brothers Back-To-School Consumer Conference in Boston. Tyson expects 2007 pretax earnings will increase $700 million, but increased grain costs will cut into its earnings by almost $300 million. Bond will say Tyson has initiated a program called FAST -- focus, agility, simplify and trust -- which emphasizes "doing only value-added activities and encouraging faster decision making." The program is expected to help the company continue streamlining, and may involve reducing layers of management and giving managers more decision-making authority.
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