MERRIAM, KAN. – Seaboard Corp. announced its financial results for the second fiscal quarter which showed promise in its turkey investments.
As an investor in Butterball LLC, Seaboard reported net sales of $417 million in Q2, an 11% increase compared to $371 million during the same period in 2021.
In its turkey segment for the quarter ending July 2, 2022, the company reported a net profit of $11 million, an improvement from the previous year’s loss of $4 million.
For its filing to the Securities and Exchange Commission (SEC), Seaboard said the turkey segment numbers occurred due to higher selling prices that were partially offset by lower volumes of turkey products sold. This also included higher feed, plant production and transportation costs.
Operating income for the Pork Segment stood at $1 million for the second quarter. This is down from $129 million in the same period during 2021. Operating income in pork for the first six months of 2022 was $28 million compared to $190 million last year.
In the second quarter, the pork segment showed net sales of $663 million, a 4.5% decrease compared to the same quarter in 2021, which totaled $693 million.
“The decrease for the three-month period primarily reflected lower volumes and prices of market hogs and pork products sold and lower volumes of biodiesel, partially offset by increased sales of biofuel credits and higher biodiesel prices,” the company said in its filing.
In its latest filing, Seaboard said it invested $273 million in property, plant and equipment in the first half of fiscal 2022, of which $145 million was in the Pork segment and $109 million was in the Marine segment. For the remainder of 2022, Seaboard said management has budgeted capital expenditures totaling $435 million.
Overall, Seaboard in the second quarter posted net income of $108 million, equal to $92.53 on the common stock, down 39% from $176 million, or $151.56 per share, in the same period a year ago. Net sales were $2.97 billion, up 22% from $2.43 billion in the same period a year ago.