MERRIAM, KAN. — Seaboard Corp. posted operating income of $28 million in its Commodity Trading and Milling (CT&M) segment during the third quarter ended Sept. 26, up 100% from $14 million in the same quarter a year ago.

Seaboard said the increase in operating income primarily reflected higher margins on third-party sales, including from the ContiLatin del Peru SA business acquired in October 2019.

“Due to worldwide commodity price fluctuations, the uncertain political and economic conditions in the countries in which this segment operates, the volatility in the commodity markets and the ongoing impacts of the COVID-19 pandemic, management is unable to predict future sales and operating results; however, management anticipates this segment will be profitable for the remainder of 2020,” Seaboard noted in an Oct. 27 filing with the US Securities and Exchange Commission.

Had Seaboard not applied mark-to-market accounting to its derivative instruments, operating income in the segment would have been $23 million, up from $14 million in the same period a year ago.

Net sales for the segment during the most recent quarter totaled $880 million, down 3.7% from $913 million in the same period a year ago. The decrease primarily reflected lower affiliate volumes and lower sales prices of certain commodities sold, partially offset by higher volumes of corn and other commodities sold to third-party customers, Seaboard said.

In the SEC filing, Seaboard said it invested $160 million in property, plant and equipment in the first nine months of fiscal 2020, of which $117 million was in the Pork segment, $23 million in the Power segment and the remaining amount in other segments. For the remainder of 2020, Seaboard said management has budgeted capital expenditures totaling $91 million.

Overall, Seaboard in the third quarter posted net earnings of $147 million, equal to $126.17 per share on the common stock, which compared with a loss of $7 million in the same period a year ago. Net sales were $1.65 billion in the third quarter, down 1.1% from $1.66 billion in the same period a year ago.

In the nine months ended Sept. 26, net income was $18 million, or $15.14 per share, down sharply from $108 million, or $92.97, in the same period a year ago. Net sales were $5.14 billion, up from $5.03 billion.