Seaboard Corp’s Q3 performance hit by falling commodity prices, lower margins

USA – Seaboard Corporation’s Commodity Trading and Milling (CT&M) segment has reported an operating income of US$31 million in Q3 2024, marking a 6% decline from the US$33 million achieved in Q3 2023.

This decline was attributed to narrower margins linked to a significant drop in commodity sales prices.

Net sales for the CT&M segment reached US$1.12 billion, down by 11% from US$1.25 billion in the prior year. The reduced sales value, primarily driven by lower average sales prices, reflects a US$212 million decrease in quarterly revenue.

According to the company, these results mirror the ongoing challenges in the commodity markets, as prices for several agricultural commodities have softened globally in recent months.​

Across its business segments, Seaboard sustained an overall loss of US$149 million in the third quarter, a steep reversal from the US$126 million in income reported in the same period of 2023.

The company’s net sales fell to $2.22 billion, a 7.2% year-over-year decline from US$2.39 billion. The weaker performance was felt across segments, as higher costs and decreased commodity prices impacted its key profit drivers.

Additionally, Seaboard’s earnings were pressured by rising input costs, reflecting a broader trend in the global commodities market, where unpredictable weather and fluctuating demand have created turbulence​

In its recent U.S. Securities and Exchange Commission (SEC) filing on October 29, Seaboard revealed capital expenditures totaling US$373 million for the first three quarters of 2024.

Major investments were channeled into its biogas recovery projects within the Pork segment and installment payments on new vessels in the Marine segment.

This expenditure aligns with Seaboard’s ongoing strategy to increase its operational efficiency and environmental sustainability. The company has budgeted an additional US$165 million in capital investments through the end of 2024, aiming to build long-term resilience in its core operations​.

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