Income falls for Seaboard trading, milling unit

by Eric Schroeder
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SHAWNEE MISSION, KAS. — Operating income of the Commodity Trading and Milling Division of Seaboard Corp. in the first quarter ended March 30 decreased 52% to $12,328,000 from $25,693,000 in the same period a year ago, reflecting lower margins on commodity trading sales to third parties and non-consolidated affiliates, especially on sales of wheat and corn. Excluding mark-to-market adjustments, operating income in the quarter fell to $4,000,000 from $19,400,000.

Division sales totaled $800,754,000, up 11% from $724,538,000 in the first quarter of fiscal 2012. Seaboard said the increase reflected higher prices for wheat and soybean meal during the quarter.

Operating income in the company’s Pork segment totaled $32,264,000, down 39% from $52,873,000 in the same period a year ago. Seaboard said the decrease was primarily a result of lower prices for pork products and higher feed costs, partially offset by a one-time credit of $11.3 million.

Net sales in the Pork segment increased 2% to $409,252,000 from $400,661,000.

In the company’s Sugar segment, operating income totaled $16,541,000, down narrowly from $16,977,000 in the first quarter of fiscal 2012. Seaboard said the decrease primarily reflected lower income from sugar sales as a result of lower volumes of sales and lower sales.

Net sales for the Sugar segment in the first quarter fell 10% to $66,164,000 from $73,619,000.

Overall, Seaboard Corp. net income in the first quarter was $57,454,000, equal to $47.98 per share on the common stock, down 30% from $82,209,000, or $68 per share, in the first quarter of fiscal 2012.
Net sales for the quarter totaled $1,582,296,000, up 8% from $1,471,113,000 in the same period last year.

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