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Seaboard Corp Reports Operating Results (10-Q)

November 06, 2009 | About:
10qk

10qk

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Seaboard Corp (SEB) filed Quarterly Report for the period ended 2009-10-03.

Seaboard Corporation is a diversified international agribusiness andtransportation company. In the United States Seaboard is primarily engaged in pork production and processing poultry production and processing oceantransportation and commodity merchandising. Overseas they are engaged in flour milling citrus and produce farming shrimp production andprocessing sugar production and refining power generation and polypropylene bag manufacturing. Seaboard Corp has a market cap of $1.75 billion; its shares were traded at around $1414 with a P/E ratio of 17.8 and P/S ratio of 0.4. The dividend yield of Seaboard Corp stocks is 0.2%. Seaboard Corp had an annual average earning growth of 32.6% over the past 10 years. GuruFocus rated Seaboard Corp the business predictability rank of 4-star.

Highlight of Business Operations:

Three Months Ended Nine Months Ended

October 3, September 27, October 3, September 27,

2009 2008 2009 2008

Net sales:

Products (includes sales to $ 647,256 $ 826,826 $1,990,553 $2,303,849

foreign affiliates of

$138,396, $156,128, $399,296

and $414,430, respectively)

Services 176,906 266,545 575,611 719,804

Other 30,463 38,320 75,859 101,657

Total net sales 854,625 1,131,691 2,642,023 3,125,310



Dividends declared per common

share $ 0.75 $ 0.75 $ 2.25 $ 2.25



As of October 3, 2009 and December 31, 2008, the available-for-sale

investments primarily consisted of fixed rate municipal notes and

bonds, money market funds and U.S. Government agency securities. At

October 3, 2009 and December 31, 2008, available-for-sale short-term

investments included $15,793,000 and $14,553,000, respectively, held

by a wholly-owned consolidated insurance captive to pay Seaboard's

retention of accrued outstanding workers' compensation claims. At

October 3, 2009 and December 31, 2008, amortized cost and estimated

fair market value were not materially different for these

investments. As of October 3, 2009, the trading securities

primarily consisted of high yield debt securities. Unrealized gains

related to trading securities were $1,238,000 and $1,779,000 for the

three and nine months ended October 3, 2009, respectively.



Quoted Prices

In Active Significant

Markets for Other Significant

Balance Identical Observable Unobservable

October 3, Assets Inputs Inputs

(Thousands of dollars) 2009 (Level 1) (Level 2) (Level 3)

Assets:

Available-for-sale securities -

short-term investments:

Fixed rate municipal notes

and bonds $143,582 $ - $143,582 $ -

Money market funds 116,498 116,498 - -

U.S. Government agency

securities 18,786 - 18,786 -

Foreign government debt

securities 20,000 - 20,000 -

Variable rate demand notes 3,900 - 3,900 -

Other debt securities 37,877 - 37,877 -

Trading securities - short-term

investments:

High yield debt securities 25,342 - 25,342 -

Other debt securities 2,449 - 2,449 -

Trading securities - other current

assets:

Domestic equity securities 10,312 10,312 - -

Foreign equity securities 6,557 3,002 3,555 -

Fixed income mutual funds 2,253 2,253 - -

U.S. Treasury securities 1,150 - 1,150 -

Money market funds 2,521 2,521 - -

U.S. Government agency securities 2,839 - 2,839 -

Other 157 140 17 -

Derivatives 11,349 7,192 4,157 -

Total Assets $405,572 $141,918 $263,654 $ -

Total Liabilities-Derivatives $ 7,148 $ 5,047 $ 2,101 $ -



Components of net periodic

benefit cost:

Service cost $ 1,509 $ 1,376 $ 4,520 $ 4,013

Interest cost 2,046 1,983 6,127 5,753

Expected return on plan assets (1,197) (1,697) (3,579) (4,810)

Amortization and other 1,252 390 3,747 1,177

Net periodic benefit cost $ 3,610 $ 2,052 $10,815 $ 6,133



As of October 3, 2009, Seaboard had outstanding letters of credit

("LCs") with various banks which reduced its borrowing capacity

under its committed and uncommitted credit facilities by $58,123,000

and $4,099,000, respectively. Included in these amounts are LCs

totaling $42,688,000, which support the Industrial Development

Revenue Bonds included as long-term debt and $15,350,000 of LCs

related to insurance coverages.



Read the The complete ReportSEB is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc..

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

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