MERRIAM, KAN. – With continued volatility in the pork market, Seaboard Corp. for the second fiscal quarter ended June 27, 2020, reported a net loss of $26 million, and a net loss of $22.35 per share of the common stock, compared to earnings of $58 million, $50.13 per share, during the same quarter in 2019.
According to the company’s filing with the Securities and Exchange Commission (SEC), the company reported net sales of $1.81 billion compared to $1.82 billion during the same period last year.
In the second quarter, lower prices and volumes of pork products sold drove net sales in the pork segment to $459 million in Q2, a 7.2% decrease over the same quarter in 2019, which totaled $492 million.
Operating income for the pork segment in Q2 was reported at $11 million, compared to $25 million in the same period the previous year.
As an investor in Butterball LLC, Seaboard reported net sales of $327 million in Q2, a 4.9% decrease compared to $343 million during the same period in 2019. Despite higher sales, Butterball’s net loss was reported at $27 million, a slight improvement from the previous year’s loss of $16 million. In the SEC filing, Seaboard said Butterball’s position was due to lower volumes of turkey products sold related to a decline in foodservice demand and higher production costs primarily related to labor.
Seaboard also explained in the filing that the extent of COVID-19 pandemic impacts on the financial condition of Seaboard is still uncertain. However, management at Seabord does project to be profitable for the rest of 2020.
“There still remains uncertainty about the expected length and impact that the COVID-19 pandemic will have on Seaboard’s operations and the global economy,” the company said. “Seaboard is taking a variety of measures to ensure the availability and functioning of its essential operations and to promote the safety and security of all of its employees.”
Seaboard stated it invested $75 million during the first six months of 2020 for the pork segment. The expenditures were mainly for expansion of the Guymon, Okla.-based pork plant and the modifications to the idle ethanol plant in Hugoton, Kan.
On July 20, Seaboard announced Robert Steer was elected by the company’s board of directors to succeed Steve Bresky as chief executive officer. Bresky died on July 10 at the age of 67.