Tyson Foods CEO leaves company; shares slump

By Bob Burgdorfer

CHICAGO (Reuters) - Tyson Foods Inc (TSN.N) Chief Executive Dick Bond said on Monday he was leaving the world's largest meat producer, effective immediately, a move that surprised analysts and sent Tyson shares down 6 percent.

Bond, 61, had been president and CEO since May 2006 and had been a member of the board since 2001. Analysts were caught off guard, saying the company appeared well positioned to withstand the current pressures on the meat industry.

"The timing was a surprise. Though we expected Mr. Bond to retire at some point this year, we did not think his departure would be so sudden," Ken Goldman, J.P. Morgan food industry analyst, said in a note to clients.

John Urbanchuk, food economist at the consulting firm LECG, said of Bond's decision, "That is surprising. When there is that kind of abrupt change, that tells me that maybe something else is going on."

In 2008, Tyson and other meat companies were hurt by high feed prices early in the year and, later, slowing economies around the world. Tyson's earnings fell 68 percent to $86 million in the fiscal year ended in September.

Meat industry conditions appear to be improving, with feed costs down from the highs in early 2008 and producers cutting production, which should lift meat prices in 2009.

"While Tyson will likely report a very weak first quarter, we do not believe that Bond's departure is related to near-term earnings...," said Farha Aslam, Stephens Inc food analyst, said in a note.

FORMER CHAIRMAN, CEO BECOMES INTERIM CHIEF