Seaboard milling income falls 70% in Q3

by Eric Schroeder
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SHAWNEE MISSION, KAS. — Operating income of the Commodity Trading and Milling Division of Seaboard Corp. in the third quarter ended Oct. 3 fell to $6,466,000, down 70% from $21,443,000 in the same quarter a year ago. Seaboard said the operating income decline primarily reflected fluctuation in marking to market certain derivative contracts.

Division sales totaled $364,146,000, down 27% from $495,656,000. The sales decrease primarily reflected price decreases for commodities sold by the commodity trading business, especially for wheat, partially offset by increased commodity trading volumes to non-consolidated affiliates.

For the nine months ended Oct. 3, operating income in the Commodity Trading and Milling Division totaled $24,917,000, down 71% from $83,627,000 in the same period a year ago. Net sales were $1,105,158,000, down 20% from $1,383,120,000.

Overall, Seaboard Corp. net income in the third quarter was $36,715,000, equal to $29.69 per share on the common stock, up 12% from $32,905,000, or $26.47 per share. Net sales for the quarter totaled $854,625,000, down 24% from $1,131,691,000 in the same period last year. For the first nine months net income was $79,607,000, or $64.32 per share, down from $123,895,000, or $99.62 per share. Net sales totaled $2,642,023,000, down from $3,125,310,000.

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