August 11, 2011


Seaboard's Q2 2011 profits soar 46%



Seaboard Corp. has posted a 46% increase in business earnings for the second quarter of fiscal 2011, aided by a 27% jump in pork sales in the period ended July 2.


The Merriman, Kansas-based diversified conglomerate said the US$113 million in net income attributable to Seaboard, about US$93 per share, included a US$51 million gain from the sale of power generating assets in the period. Total revenues reached nearly US$1.4 billion, an increase of 32% from year-ago results.


Seaboard's pork operation posted net sales of US$441.4 million, up US$93.1 million from sales in the second quarter of 2010. Operating income rose by nearly US$4 million to US$62.5 million. The company said the gains primarily reflected an increase in overall prices for pork products and also higher prices for biodiesel and higher volume of pork products sold. The gains were partially offset by higher grain prices and higher costs for hogs bought from third parties.


Looking forward, Seaboard management believes that operating income for the rest of fiscal 2011 should remain positive, although at lower levels than those seen in the first six months of the year. The company will also continue to monitor a situation at its ham-boning plant in Mexico, which could result in a charge to future earnings. Seaboard said the plant has been underperforming since it opened in 2009.

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