MERRIAM, KAN. — Seaboard Corp. posted operating income of $30 million in its Commodity Trading and Milling (CT&M) segment during the second quarter ended July 2, up 88% from $16 million in the same quarter a year ago.
Seaboard said the increase in operating income primarily reflected higher margins on certain commodities.
Had Seaboard not applied mark-to-market accounting to its derivative instruments, operating income in the segment would have been $39 million, up from $26 million in the same period a year ago.
Net sales for the segment during the most recent quarter totaled $1.71 billion, up 24% from $1.38 billion in the same period a year ago. The increase primarily reflected higher sales prices and, to a lesser extent, higher volumes of certain commodities to third-party customers, offset by lower volumes to affiliates, Seaboard said.
In an Aug. 2 filing with the US Securities and Exchange Commission, Seaboard said it invested $273 million in property, plant and equipment in the first half of fiscal 2022, of which $145 million was in the Pork segment and $109 million was in the Marine segment. For the remainder of 2022, Seaboard said management has budgeted capital expenditures totaling $435 million.
Overall, Seaboard in the second quarter posted net income of $108 million, equal to $92.53 on the common stock, down 39% from $176 million, or $151.56 per share, in the same period a year ago. Net sales were $2.97 billion, up 22% from $2.43 billion in the same period a year ago.