On November 2nd Seaboard Corporation (SEB) published results for the third quarter of FY 2021 ending October 2nd. Seaboard is a conglomerate with interests in pork, shipping, milling, commodity trading, power generation, ethanol production and is a fifty percent shareholder in Butterball LLC.
For the period, the company earned $194 million on revenue of $2,276 million with an EPS of $81.50. Corresponding values for Q3 of fiscal 2020 ending September 26th included net earnings of $151 million on revenue of $1,645 million with an EPS of $132.58.
For the most recent quarter, the Pork Segment attained revenue of $527 million out of total Company earnings of $2,276 million. The Pork segment contributed $52 million to Company earnings out of a total for all segments amounting to $116 million.
Seaboard Corporation holds 50 percent of the equity of Butterball LLC valued at $245 million. For the quarter, based on the Seaboard Corporation SEC Q-10 posting, Butterball represented a loss to Seaboard of $10 million for Q3 FY 2021 and a loss of $19 million as reflected on the income statement of Seaboard Corporation. Butterball attained revenue of $464 million in Q3 with an operating loss of $15 million and a net loss of $18 million. Total assets of Butterball were valued at $1,200 million. The Seaboard 10-Q report ascribes the loss in the Butterball subsidiary as due to higher feed and production costs offset by an increase in sales volume and higher unit revenue. Seaboard anticipates a profit for Butterball in Q4 attributed to seasonal sales and higher prices.
Seaboard Corporation posted a November 3rd intraday market capitalization of $4,470 million. The 52-week share price has ranged from $2,870 to $4,470 with a 50-day moving average of $4,077. On a trailing 12-month basis, operating margin was 5.1 percent and profit margin 9.5 percent. The company generated a return on assets of 4.0 percent and 20.3 percent on equity Of the shareholding, 78 percent is held by insiders.