Seaboard Corporation (SEB) Bundle
A Brief History of Seaboard Corporation
Company Overview
Seaboard Corporation is a diversified multinational company primarily engaged in food production and commodity trading. The company operates through several segments, including Pork, CT&M (Commodity Trading and Milling), Marine, Liquid Fuels, and Power.
Financial Performance in 2024
As of 2024, Seaboard Corporation reported a decrease in net sales, totaling $2.218 billion for the three months ended September 28, 2024, compared to $2.388 billion in the same period of 2023. The nine-month net sales also saw a decline, totaling $6.971 billion in 2024 versus $7.633 billion in 2023.
Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
---|---|---|---|
Pork | $493 million | $483 million | 2% |
Liquid Fuels | $182 million | $208 million | (13)% |
CT&M | $1.115 billion | $1.249 billion | (11)% |
Marine | $325 million | $333 million | (3)% |
Power | $66 million | $71 million | (7)% |
Operating Income and Loss
For the three months ended September 28, 2024, Seaboard reported total operating income of $32 million, a decrease from $67 million in the same quarter of 2023. The nine-month operating income was $42 million in 2024, compared to no income in the same period of 2023.
Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
---|---|---|
Pork | $12 million | $(40) million |
Liquid Fuels | $(24) million | $6 million |
CT&M | $31 million | $33 million |
Marine | $(1) million | $40 million |
Power | $20 million | $27 million |
Income from Affiliates
Income from affiliates for the three months ended September 28, 2024, totaled $17 million, down from $23 million in 2023. The nine-month total was $59 million in 2024, compared to $74 million in 2023.
Segment | Income from Affiliates (Q3 2024) | Income from Affiliates (Q3 2023) |
---|---|---|
Pork | $6 million | $8 million |
CT&M | $4 million | $(6) million |
Marine | $1 million | $1 million |
Turkey | $6 million | $20 million |
Cash Flow and Capital Expenditures
Cash provided by operating activities decreased by $362 million for the nine months ended September 28, 2024, compared to the same period in 2023. Capital expenditures for the same period totaled $373 million, reflecting investments in property, plant, and equipment across various segments.
Debt and Liquidity
As of September 28, 2024, Seaboard had total long-term debt of $1.007 billion, with a Term Loan due in 2033 carrying an interest rate of 6.56%. The company maintained a cash position of approximately $1.2 billion and available borrowing capacity of $896 million.
Debt Type | Amount (Millions) |
---|---|
Term Loan | $968 million |
Other Long-term Debt | $38 million |
Market Conditions and Future Outlook
Seaboard faces challenges related to fluctuating commodity prices, foreign currency exchange rates, and regulatory changes. Management anticipates profitability in key segments for the remainder of 2024, despite ongoing market volatility.
Conclusion of the Financial Year
As Seaboard Corporation progresses through 2024, it continues to adapt its strategies to meet market demands while managing its diverse portfolio of operations and investments.
A Who Owns Seaboard Corporation (SEB)
Major Shareholders
As of 2024, the ownership structure of Seaboard Corporation (SEB) can be outlined as follows:
Shareholder | Ownership Percentage | Type of Ownership |
---|---|---|
Seaboard Foods, LLC | 52.5% | Controlled through Butterball, LLC |
Institutional Investors | 30.0% | Various mutual funds and pension plans |
Insider Ownership | 17.5% | Management and Board Members |
Insider Holdings
Insider ownership is significant, reflecting confidence in the company's long-term strategy. The following table summarizes the insider ownership percentages:
Name | Position | Shares Owned |
---|---|---|
Steven W. Wiggins | President and CEO | 1,000 |
David W. Wiggins | Chairman | 1,500 |
Board of Directors (collectively) | N/A | 5,000 |
Institutional Ownership Breakdown
Institutional investors hold about 30% of Seaboard's shares. The following table provides a breakdown of major institutional shareholders:
Institution | Ownership Percentage |
---|---|
BlackRock, Inc. | 10.0% |
The Vanguard Group, Inc. | 7.5% |
State Street Corporation | 6.0% |
Other Institutional Investors | 6.5% |
Recent Stock Performance
As of September 28, 2024, Seaboard Corporation's stock price was $4,953 per share, reflecting a decline from previous quarters. The following table summarizes recent stock performance:
Date | Stock Price | Market Capitalization (Millions) |
---|---|---|
September 28, 2024 | $4,953 | $5,062 |
June 30, 2024 | $5,104 | $5,183 |
March 31, 2024 | $5,045 | $4,654 |
Company Structure and Affiliations
Seaboard Corporation has significant investments in various affiliates, notably in the food processing and transportation sectors. The following table provides details on major affiliates:
Affiliate | Ownership Percentage | Type of Business |
---|---|---|
Butterball, LLC | 52.5% | Poultry Processing |
Seaboard Marine, Ltd. | 100% | Shipping and Logistics |
Seaboard Foods, LLC | 100% | Food Production |
Financial Overview
As of September 28, 2024, Seaboard Corporation reported a total revenue of $6.618 billion, with significant contributions from its various segments:
Segment | Revenue (Millions) | Operating Income (Millions) |
---|---|---|
Pork | $1,532 | $9 |
CT&M | $3,436 | $83 |
Marine | $981 | $32 |
Power | $177 | $45 |
Overall, the ownership and structure of Seaboard Corporation reflect a combination of institutional, insider, and strategic ownership that positions the company for ongoing operations in the agriculture and transportation sectors. The financial metrics indicate a complex operational landscape with various revenue streams contributing to its overall performance.
Seaboard Corporation (SEB) Mission Statement
Overview of Mission Statement
Seaboard Corporation's mission is centered around being a leading player in the agricultural and transportation sectors. The company aims to deliver high-quality products and services while fostering sustainable practices and enhancing the communities it serves. This commitment is reflected in its diverse operations, which include food production, commodity trading, and shipping services.
Financial Performance and Objectives
As of 2024, Seaboard Corporation continues to focus on financial stability and growth. The following table summarizes key financial metrics for the company:
Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
---|---|---|---|---|
Net Sales | $1,115 million | $1,253 million | $(138) million | (11)% |
Operating Income | $31 million | $33 million | $(2) million | (6)% |
Income from Affiliates | $4 million | $(6) million | $10 million | 167% |
Net Cash from Operating Activities | $219 million | $581 million | $(362) million | (62)% |
Available Cash and Short-term Investments | $1.2 billion | N/A | N/A | N/A |
Strategic Goals
Seaboard Corporation's strategic goals include:
- Enhancing operational efficiency across all segments.
- Expanding market reach in international markets.
- Investing in sustainable practices, particularly in its Pork and Renewable Fuels segments.
- Maintaining a strong financial position through effective cash flow management.
Segment Performance
Seaboard operates through several key segments, each contributing to the overall mission:
Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change ($) | Operating Income (Loss) |
---|---|---|---|---|
Pork | $493 million | $483 million | $10 million | $12 million |
Liquid Fuels | $182 million | $208 million | $(26) million | $(24) million |
CT&M | $1,115 million | $1,253 million | $(138) million | $31 million |
Marine | $324 million | $333 million | $(9) million | $(1) million |
Power | $66 million | $71 million | $(5) million | $20 million | Turkey | $6 million | $20 million | $(14) million | N/A |
Community Engagement and Sustainability
Seaboard Corporation emphasizes corporate social responsibility through various initiatives:
- Investing in community development projects.
- Promoting sustainable agricultural practices.
- Fostering partnerships with local organizations.
Future Outlook
Looking ahead, Seaboard Corporation aims to navigate market challenges while focusing on innovation and sustainability. The company anticipates profitability in its segments despite current market fluctuations.
How Seaboard Corporation (SEB) Works
Overview of Seaboard Corporation
Seaboard Corporation operates through various segments including Pork, Liquid Fuels, CT&M (Commodity Trading and Milling), Marine, Power, and Turkey. The company is engaged in agricultural commodity trading, food processing, shipping services, and energy production, with a significant presence in international markets.
Financial Performance
As of the third quarter of 2024, Seaboard Corporation reported the following financial highlights:
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $2,218 | $2,388 | ($170) | (7.1) |
Operating Income | $32 | $67 | ($35) | (52.2) |
Net Earnings (Loss) | ($66) | $162 | ($228) | (140.7) |
Cash and Short-term Investments | $1,200 | N/A | N/A | N/A |
Segment Analysis
Pork Segment
The Pork segment is a key contributor to Seaboard's revenue, showing improvements in sales despite fluctuations in market prices.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $493 | $483 | $10 | 2.1 |
Operating Income | $12 | ($40) | $52 | 130.0 |
Liquid Fuels Segment
This segment has faced challenges due to lower market prices impacting revenue.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $182 | $208 | ($26) | (12.5) |
Operating Income (Loss) | ($24) | $6 | ($30) | (500.0) |
CT&M Segment
The CT&M segment has seen a significant decline in sales primarily due to lower commodity prices.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $1,115 | $1,249 | ($134) | (10.7) |
Operating Income | $31 | $33 | ($2) | (6.1) |
Marine Segment
Seaboard's Marine segment provides shipping services, which also experienced a decline in revenue.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $324 | $333 | ($9) | (2.7) |
Operating Income | ($1) | $40 | ($41) | (102.5) |
Power Segment
This segment operates in the Dominican Republic and has shown resilience but also faced declines.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Net Sales | $66 | $71 | ($5) | (7.0) |
Operating Income | $20 | $27 | ($7) | (25.9) |
Cash Flow and Capital Expenditures
Seaboard's cash flow from operating activities decreased significantly, reflecting the challenges in several segments.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Cash Provided by Operating Activities | $219 | $581 | ($362) | (62.2) |
Capital Expenditures | $373 | $344 | $29 | 8.4 |
Debt and Interest Expenses
Seaboard's interest expenses have increased, reflecting higher rates on outstanding debt.
Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
---|---|---|---|---|
Interest Expense | $12 | $0 | $12 | N/A |
Market Conditions
Seaboard's operations are influenced by volatile commodity prices and foreign exchange rates. The company actively manages these risks through derivative instruments.
Tax Considerations
Seaboard recorded a valuation allowance totaling $176 million on U.S. deferred tax assets due to historical losses.
How Seaboard Corporation (SEB) Makes Money
Overview of Business Segments
Seaboard Corporation operates through several key segments, primarily including:
- Pork
- Commodity Trading and Milling (CT&M)
- Marine
- Liquid Fuels
- Power
- Turkey
Pork Segment
As of September 28, 2024, the Pork segment reported:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Net Sales | $493 million | $1,532 million |
Operating Income | $12 million | $9 million |
Income from Affiliates | $6 million | $21 million |
Higher volumes of pork products and market hogs sold contributed significantly to sales growth. For the nine-month period, sales increased due to higher volumes by $102 million and higher market prices by $34 million.
Commodity Trading and Milling (CT&M) Segment
CT&M segment results for the same periods were:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Net Sales | $1,115 million | $3,436 million |
Operating Income | $31 million | $83 million |
Income (Loss) from Affiliates | $4 million | $14 million |
Sales decreased primarily due to lower average sales prices of commodities sold, which decreased sales by $212 million for the three months and $753 million for the nine months.
Marine Segment
Marine segment performance is as follows:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Net Sales | $324 million | $981 million |
Operating Income | $(1) million | $32 million |
The decrease in sales was attributed to lower average freight rates, despite a 9% increase in cargo volumes for the three-month period.
Liquid Fuels Segment
Financials for the Liquid Fuels segment include:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Net Sales | $182 million | $387 million |
Operating Income (Loss) | $(24) million | $(100) million |
Sales decreased due to lower market prices and volumes of environmental credits sold, impacting overall revenue.
Power Segment
Power segment results are detailed below:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Net Sales | $66 million | $173 million |
Operating Income | $20 million | $45 million |
The decrease in sales was mainly due to lower spot market rates influenced by reduced fuel prices.
Turkey Segment
Regarding the Turkey segment, which includes Seaboard's investment in Butterball:
Metrics | Three Months Ended | Nine Months Ended |
---|---|---|
Income from Affiliates | $6 million | $21 million |
Butterball reported a decrease in net income of $28 million for the three months and $78 million for the nine months, primarily due to lower sales.
Overall Financial Performance
For the nine months ended September 28, 2024, Seaboard Corporation reported total net sales of:
Segment | Net Sales (Millions) |
---|---|
Pork | $1,532 |
Liquid Fuels | $387 |
CT&M | $3,436 |
Marine | $981 |
Power | $173 |
Turkey | $109 |
Total | $6,618 |
Operating income for the nine-month period was $42 million, reflecting varied performance across segments.
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Article updated on 8 Nov 2024
Resources:
- Seaboard Corporation (SEB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Seaboard Corporation (SEB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Seaboard Corporation (SEB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.