SPRINGDALE, Ark. – In a filing with the US SEC, Tyson Foods Inc., based out of Arkansas, said one of their cattle suppliers hasn’t been fully truthful.
The supplier, who has not been named, allegedly told Tyson they bought more cattle on behalf of Tyson’s beef segment, than they actually did. This caused Tyson to overstate their live cattle inventory by $285 million. Now, they are having to file with the SEC to correct that statement.
KAPP KVEW reached out to Tyson Foods Inc. who released this statement:
“As a result of an internal, self-initiated review of our cattle suppliers, Tyson Foods Monday issued an 8-K disclosing that one supplier made misrepresentations regarding the number of cattle it purchased on behalf of our Beef segment. This caused Tyson Foods to overstate live cattle inventory as of the fiscal year ended October 3, 2020 by an estimated amount of $285 million.
As stated in our 8-K, we expect that 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.
Tyson also initiated an investigation by outside advisors to review the facts and circumstances surrounding the misappropriation of company funds. That investigation has found no evidence that Tyson benefited from the supplier’s unlawful conduct or that anyone at Tyson took steps to alter financial statements to hide the transactions resulting from the supplier’s unlawful acts.
Tyson has begun to implement certain enhancements and remedial measures to our internal control over financial reporting to ensure the existence and accuracy of the recording of live cattle inventory.”
Tyson found that no employees tried to alter financial statements or benefited from this unlawful conduct.
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