Seaboard pork segment records sales decline
SHAWNEE MISSION, Kan. – Operating income and net sales for Seaboard Corp.’s Pork Segment declined in the second quarter ended June 30, 2012.
Net sales for the Pork Segment decreased $40.7 million and $64.1 million for the three and six month periods of 2012, respectively, compared to the same periods in 2011. Seaboard attributed the declines to lower domestic sales prices for pork products and, to a lesser extent, lower export sales volume for pork products sold.
Operating income for the Pork Segment decreased $41.7 million ($20,846,000) and $68.4 million for the three and six month periods of 2012, respectively, compared to the year-ago periods. Lower prices for domestic pork products sold and, to a lesser extent, higher feed costs impacted segment performance, according to the company.
“Management is unable to predict future market prices for pork products or the cost of feed,” the company said in a financial filing. “However, management anticipates positive operating income for the remainder of 2012, although at a lower level than 2011 as a result of current market conditions.”
Butterball had total net sales of $302,423,000 for the three months ended June 30, compared to total net sales of $292,814,000 in the comparable year-ago period. Butterball's operating income was $17,767,000 in the second quarter compared to operating income of $9,233,000 in 2011.
Seaboard Corp. reported net sales of $1,510,593,000 for the second quarter ended June 30. This compares to net sales of $1,398,587,000 in the same year-ago quarter, according to the company.
Net earnings attributable to Seaboard for the quarter were $50,097,000, down from $113,306,000 in the comparable period in 2011. Net earnings per common share declined to $41.48 for the second quarter in 2012 from $93.34 in 2011.
Gains from a sale of power generating facilities were included in net earnings for the three and six months ended June 30.
Net sales for the six months ended June 30 advanced to $2,981,706,000 compared to $2,866,766,000 in the six months ended July 2, 2011, according to Seaboard. Net earnings declined to $132,306,000 for the six months ended June 30 compared to net earnings of $230,350,000 in the comparable year-ago period.
The company has budgeted capital expenditures totaling $103.2 million for the remainder of 2012.
“The Pork segment plans to spend $39.2 million primarily for improvements to existing facilities and related equipment, a new feed mill and additional finishing barns,” the company said.