MERRIAM, KAN. – Seaboard Corp. posted net loss earnings of $16 million, equal to a $13.78 drop per share on the common stock, in the first quarter ended April 1, 2023. This result was down from $104 million, or $89.28 per share, in the same period a year ago. Net sales were $2.499 billion in the first quarter, compared to $2.709 billion in the same period a year ago.

Net sales in the pork segment were at $614 million for the first quarter of 2023, compared to $620 million in the same period in 2022.

“The decrease was primarily the result of lower sales prices of pork products and market hogs due to declines in commodity market pricing reducing net sales by $58 million,” Seaboard said in the filing. “This decrease was partially offset by $54 million of sales from the renewable diesel plant in Hugoton, Kan., that began operations during the third quarter of 2022. An increase in biodiesel gallons sold of $18 million was offset by lower prices for, and the timing of, sales of related credits of $19 million.

Later in its filing, Seaboard shared its outlook for the remainder of the year in its pork segment. 

“Management is unable to predict market prices for pork products, biodiesel, renewable diesel or the cost of feed or third-party hogs for future periods; however, based on current conditions management anticipates this segment will not be profitable for the remainder of 2023,” the company said.

Operating income loss in its pork segment was $239 million for the quarter. 

Seaboard said that “the decrease was primarily due to $215 million in lower margins on pork products and market hogs due to lower sales prices, higher hog costs primarily due to an increase in feed costs of $74 million and a $53 million non-cash adjustment to record this segment’s inventory as of April 1, 2023, at the lower of cost and net realizable value.”

During the first three months of 2023, Seaboard invested $111 million in property, plant and equipment, with $81 million for the pork segment and for biogas recovery projects and other investments.

Company-wide operating income was $63 million, down from $146 million last year. 

Seaboard’s turkey business, represented by its investment in Butterball LLC, reported $25 million in the first quarter compared to $16 million a year ago. 

The company said the higher margins were due to a 17% increase in sales prices due to general commodity pricing and a stronger mix of value-added products.