Tyson Foods taps board member to succeed veteran King as CEO
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By Tom Polansek and Neil J Kanatt May 28 (Reuters) - U.S. meatpacker Tyson Foods said on Thursday that board member and former Procter & Gamble executive Jeff Schomburger will take over as CEO from company veteran Donnie King in October. The shuffle rattled some investors and analysts at a time when Tyson has relied on growth in its chicken business to help offset steep losses in its beef segment, which has been under pressure due to tight U.S. cattle supplies. Meatpackers are processing fewer cattle, with inventories at a 75-year low, and reporting losses in their beef businesses because soaring cattle costs have outpaced gains from record beef prices. Profits are up in Tyson's chicken business this fiscal year, though, after King led a turnaround. The company reported better-than-expected quarterly earnings and raised its full-year income forecast this month, helped by strong chicken sales. "Tyson has been doing very well and materially outperforming competitors in its marquee chicken business, and Donnie King has spearheaded that," said analyst Heather Jones of Heather Jones Research. "In light of that, this move creates much uncertainty and questions. This removes the person from the helm that investors really trusted." Tyson shares fell 6%. KING REMAINS ON BOARD Some investors had expected another executive, Devin Cole, to succeed King. Last year, Tyson...
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