SEABOARD CORPORATION REPORT OF EARNINGS AND DIVIDEND DECLARATION

Rhea-AI Summary

Seaboard (NYSE American: SEB) reported its earnings for Q2 2024 and H1 2024. Net sales for Q2 2024 were $2,209 million, down from $2,393 million in Q2 2023. Operating income improved to $30 million in Q2 2024 from a loss of $4 million in Q2 2023. Net earnings attributable to Seaboard increased to $61 million in Q2 2024 from $52 million in Q2 2023. Earnings per share rose to $62.82 in Q2 2024 from $44.80 in Q2 2023. The company declared a quarterly cash dividend of $2.25 per share, payable on August 19, 2024, to stockholders of record as of August 9, 2024.

Positive

• Operating income improved from a loss of $4 million in Q2 2023 to a profit of $30 million in Q2 2024
• Net earnings increased from $52 million in Q2 2023 to $61 million in Q2 2024
• Earnings per share rose from $44.80 in Q2 2023 to $62.82 in Q2 2024
• Consistent quarterly dividend of $2.25 per share maintained

Negative

• Net sales decreased from $2,393 million in Q2 2023 to $2,209 million in Q2 2024
• Six-month net sales declined from $4,892 million in H1 2023 to $4,400 million in H1 2024

Insights

Financial Analyst

Seaboard 's Q2 2024 financial results present a mixed picture with some positive developments amidst ongoing challenges. The company reported net earnings of $61 million for the quarter, a notable 17.3% increase from the $52 million in the same period last year. This improvement in profitability is particularly impressive given the decline in net sales from $2,393 million to $2,209 million, a 7.7% decrease year-over-year.

The earnings per share (EPS) saw a significant jump to $62.82 from $44.80, marking a 40.2% increase. However, it's important to note that this substantial EPS growth is partly due to a reduction in the average number of shares outstanding, which decreased from 1,160,779 to 971,055. This suggests the company may have engaged in share buybacks, effectively boosting EPS without necessarily improving operational performance to the same degree.

Operating income turned positive at $30 million compared to a $4 million loss in Q2 2023, indicating improved operational efficiency despite lower sales. This turnaround in operating performance is a positive sign, potentially reflecting successful cost management strategies or improved margins in key business segments.

The company's decision to maintain its quarterly dividend at $2.25 per share suggests confidence in its financial stability and commitment to shareholder returns. However, investors should monitor the sustainability of this dividend policy, especially if the challenging sales environment persists.

While the quarterly results show improvement, the year-to-date figures reveal ongoing pressures. The six-month net sales of $4,400 million are down 10.1% from the previous year, though net earnings have more than doubled. This discrepancy between sales and earnings trends warrants further investigation into the drivers of profitability and potential risks to revenue growth.

Market Research Analyst

Seaboard 's Q2 2024 results reflect broader trends in the diversified agribusiness and transportation sector. The company's ability to improve profitability despite declining revenues suggests successful adaptation to challenging market conditions, possibly through cost-cutting measures or strategic pivots in its business mix.

The 7.7% year-over-year decline in quarterly net sales to $2,209 million may indicate softening demand in key markets or pricing pressures. This trend is consistent with the six-month figures, showing a more pronounced 10.1% drop in net sales. Such persistent top-line pressure could signal broader economic headwinds or shifts in consumer behavior affecting Seaboard's diverse operations, which span food, shipping and commodity trading.

However, the company's improved profitability metrics are noteworthy. The transition from an operating loss to a $30 million operating income in Q2, coupled with increased net earnings, suggests effective margin management and potentially favorable commodity price movements benefiting certain segments of Seaboard's business.

The reduction in outstanding shares, contributing to the significant EPS increase, merits attention. This could indicate a strategic focus on enhancing shareholder value through capital return programs. However, investors should consider whether such financial engineering is sustainable in the long term, especially if revenue challenges persist.

Looking ahead, Seaboard's performance relative to its peers and the broader market will be important to monitor. The company's ability to maintain profitability and shareholder returns in the face of top-line pressures will be a key determinant of its market position and investor sentiment in the coming quarters.

MERRIAM, Kan., July 30, 2024 /PRNewswire/ -- The following is a report of earnings for Seaboard Corporation (NYSE American: SEB), with offices at 9000 West 67^th Street, Merriam, Kansas, for the three and six months ended June 29, 2024 and July 1, 2023, in millions of dollars except share and per share amounts.

		Three Months Ended						Six Months Ended
		June 29,			July 1,			June 29,			July 1,
		2024			2023			2024			2023
Net sales		$	2,209		$	2,393		$	4,400		$	4,892
Operating income (loss)		$	30		$	(4)		$	10		$	(67)
Net earnings attributable to Seaboard		$	61		$	52		$	83		$	36
Earnings per common share		$	62.82		$	44.80		$	85.47		$	31.01
Average number of shares outstanding			971,055			1,160,779			971,055			1,160,779
Dividends declared per common share		$	2.25		$	2.25		$	4.50		$	4.50

Seaboard Corporation today filed its Quarterly Report on Form 10-Q with the United States Securities and Exchange Commission. Seaboard Corporation has provided access to the Quarterly Report on Form 10-Q on its website at https://www.seaboardcorp.com/investors.

Also, Seaboard Corporation announced today that its Board of Directors has authorized and declared a quarterly cash dividend of $2.25 per share of its common stock. The dividend is payable on August 19, 2024 to stockholders of record at the close of business on August 9, 2024.

View original content:https://www.prnewswire.com/news-releases/seaboard-corporation-report-of-earnings-and-dividend-declaration-302210347.html

SOURCE Seaboard Corporation

FAQ

What were Seaboard 's (SEB) earnings per share for Q2 2024?

Seaboard (SEB) reported earnings per share of $62.82 for Q2 2024, up from $44.80 in Q2 2023.

How much is Seaboard 's (SEB) quarterly dividend for Q2 2024?

Seaboard (SEB) declared a quarterly cash dividend of $2.25 per share for Q2 2024, payable on August 19, 2024.

What was Seaboard 's (SEB) net sales for Q2 2024 compared to Q2 2023?

Seaboard 's (SEB) net sales for Q2 2024 were $2,209 million, down from $2,393 million in Q2 2023.

How did Seaboard 's (SEB) operating income change in Q2 2024 compared to Q2 2023?

Seaboard 's (SEB) operating income improved from a loss of $4 million in Q2 2023 to a profit of $30 million in Q2 2024.