Key facts
- Seaboard Corp. reported Q2 2021 operating income of $129 million for its Pork segment.
- Total net sales for Seaboard Corp. in Q2 2021 were $2.43 billion.
- Pork segment net sales increased 51% to $693 million in Q2 2021.
- Butterball LLC, an investment of Seaboard, saw net sales rise 13.5% to $371 million in Q2 2021.
- Seaboard's Turkey segment reported a net loss of $4 million in Q2 2021.
Seaboard Corp. reported its financial results for the second fiscal quarter ended July 3, 2021, highlighting a substantial increase in its Pork segment's operating income. The Pork segment posted an operating income of $129 million, a significant jump from $9 million in the same period of 2020. For the first six months of 2021, operating income in the Pork segment reached $190 million, compared to $41 million in the prior year.
Total net sales for Seaboard Corp. in the second quarter of 2021 were $2.43 billion, up from $1.81 billion in the corresponding quarter of 2020. The company's Pork segment saw its net sales increase by approximately 51% to $693 million in the second quarter of 2021, compared to $459 million in the second quarter of 2020.
As an investor in Butterball LLC, Seaboard reported net sales of $371 million for the second quarter, a 13.5% increase over the $327 million reported in the same period of 2020. However, Seaboard's Turkey segment incurred a net loss of $4 million in the second quarter, an improvement from the $14 million loss reported in the prior year. The company cited weaker sales mix due to decreased value-added product sales and higher feed and plant production costs as headwinds for the Turkey segment.
Seaboard noted that interest costs were lower due to mark-to-market fluctuations on interest rate swap agreements. The company stated that management is unable to predict market prices for turkey products, feed costs, or the ongoing impacts of the COVID-19 pandemic, making it uncertain whether the Turkey segment will be profitable for the remainder of 2021. Seaboard also acknowledged ongoing challenges from COVID-19, including labor shortages and commodity market volatility, with unknown long-term impacts.