Seaboard Corp. CT&M segment achieves 100% surge in Q2 operating income

USA—Seaboard Corporation, a global agribusiness and transportation company, reported a 100% increase in its Commodity Trading and Milling (CT&M) segment for the second quarter that ended June 29.

Operating income reached US$34 million from US$17 million in the same quarter last year.

The significant boost was primarily attributed to a US$13 million decrease in mark-to-market losses on derivative contracts.

Without the application of mark-to-market accounting, the operating income for the segment would have been US$35 million, compared to US$31 million in the previous year.

Net sales for the CT&M segment during the quarter totaled US$1.13 billion, reflecting a 15% decrease from US$1.34 billion in the same period last year. This decline was mainly due to lower average sales prices of commodities sold.

In a July 30 filing with the US Securities and Exchange Commission, Seaboard disclosed an investment of US$237 million in property, plant, and equipment during the first half of fiscal 2024.

This included biogas recovery projects in the Pork segment and installment payments on vessels under construction in the Marine segment. For the remainder of 2024, Seaboard has budgeted capital expenditures totaling US$320 million.

Overall, Seaboard posted a net income of US$61 million for the second quarter, equating to US$62.82 per share, a 17% increase from $52 million, or US$44.80 per share, in the same period last year. Net sales for the corporation were US$2.21 billion, down 8% from US$2.39 billion in the same quarter last year.

Recently, Seaboard Foods, a division of Seaboard Corp., promoted Chad Groves to President and Chief Executive Officer, effective July 1, 2024, replacing Peter Brown, who has retired after a notable tenure.

Chad Groves has been with Seaboard Foods for three years, initially joining in July 2021 as the senior vice president of global sales, marketing, and innovation. 

He led retail, food service, export, and processor sales efforts in this role and oversaw the marketing, innovation, communications, and sustainability teams.

Before his tenure at Seaboard, Groves held leadership positions at Trilliant Food & Nutrition LLC and High Liner Foods.

Groves holds a bachelor’s degree in selling and sales management from Purdue University and a master’s in business management from the University of North Carolina at Chapel Hill.

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