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Seaboard Corp Reports Operating Results (10-K)

March 09, 2011 | About:

Seaboard Corp (SEB) filed Annual Report for the period ended 2010-12-31.

Seaboard Corp. has a market cap of $2.66 billion; its shares were traded at around $2191 with a P/E ratio of 14 and P/S ratio of 0.7. The dividend yield of Seaboard Corp. stocks is 0.1%. Seaboard Corp. had an annual average earning growth of 5% over the past 10 years.

Highlight of Business Operations:

During the fourth quarter of 2010, Seaboard acquired for $5.0

million a 25% non-controlling interest in a commodity trading

business in Australia. Also during the fourth quarter of

2010, Seaboard combined its existing investment in poultry

operations in Africa with another existing African based

poultry business. Seaboard invested an additional $10.5

million in this newly combined poultry business for a total

investment of $17.0 million, which represents a 50% non-

controlling interest. This newly combined business has

operations in parts of Eastern and Southern Africa and is also

expanding by building new operations in Central Africa.

On December 6, 2010, Seaboard acquired a 50 percent non-

controlling voting interest in Butterball from the Maxwell

Group, for a cash purchase price equal to approximately $177.5

million. Butterball is a vertically integrated producer,

processor and marketer of branded and non-branded turkeys, and

other turkey products. The other 50 percent ownership

interest in Butterball will continue to be owned by the

Maxwell Group. In connection with the purchase, Butterball

acquired the live turkey growing and related assets of the

Maxwell Group (which previously owned a 51 percent interest in

Butterball) and of Murphy-Brown LLC ("Murphy Brown"), a

subsidiary of Smithfield Foods, Inc., which previously owned a

49 percent interest in Butterball. Butterball previously

purchased a portion of the turkeys it processed from the

Maxwell Group and Murphy Brown. In connection with this

transaction, Seaboard provided Butterball with a $100,000,000

unsecured subordinated loan with a seven year maturity and

interest of 15% per annum, comprised of 5% payable in cash

semi-annually, plus 10% pay-in-kind interest compounded semi-

annually and paid at maturity. As part of the subordinated

financing, Seaboard received detachable warrants representing

5% of the fully diluted equity units in Butterball with a

strike price of $0.01 per unit.

Read the The complete Report

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