National Beef reports $21.5M loss
NEW YORK – Leucadia National Corp., a diversified holding company engaged in a variety of businesses, recently noted the impact of tight supplies of cattle on its subsidiary, National Beef Packing, LLC, Kansas City, Mo.
The company, which reported second-quarter net income of $65.1 million, said the company made progress across many of its businesses. But National Beef has struggled due to tight supplies of cattle. Leucadia acquired an ownership interest of approximately 79 percent in National Beef in 2012.
"With the US cattle herd at 50-year lows and herd rebuilding in its early stages, margins for National Beef and US packing industry remain challenged, and the company recorded a first-half pre-tax loss of $21.5 million," the company said in a statement. "In response to insufficient cattle supply, National Beef closed its Brawley, Calif. processing facility at the end of May, which caused part of the first half loss, but will contribute to improved results going forward.
"On positive notes, the expanded tannery is approaching full capacity and management continues to focus on additional value-added opportunities for National Beef consumer-ready beef facilities," the company added. "As a result of these initiatives, we anticipate that National Beef will see improvements in profitability over the next several years."