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Seaboard Corp Reports Operating Results (10-Q)

May 08, 2009 | About:

Seaboard Corp (SEB) filed Quarterly Report for the period ended 2009-04-04.

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 $1.22 billion; its shares were traded at around $987 with a P/E ratio of 8.3 and P/S ratio of 0.3. The dividend yield of Seaboard Corp stocks is 0.3%. 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

April 4, March 29,

2009 2008

Net sales:

Products (includes sales to foreign

affiliates of $140,916 and $109,694) $ 681,513 $ 745,900

Services 214,883 218,849

Other 21,172 28,919

Total net sales 917,568 993,668

Available-for-sale securities $265,090 $ 60,666 $204,424 $ -

Total Assets $326,824 $ 90,386 $236,438 $ -

Total Liabilities - Derivatives $ 20,712 $ 11,180 $ 9,532 $ -

As of April 4, 2009, Seaboard had outstanding letters of credit

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

under its committed and uncommitted credit facilities by $58,121,000

and $1,924,000, respectively. Included in these amounts are LCs

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

Revenue Bonds included as long-term debt and $15,208,000 of LCs

related to insurance coverages.

On March 2, 2009, an agreement became effective under which Seaboard

agreed to sell its two power barges in the Dominican Republic for

$70,000,000. The agreement calls for the sale to occur on or around

January 1, 2011. During March 2009, $15,000,000 was paid to

Seaboard (recorded as long-term deferred revenue) and the

$55,000,000 balance of the purchase price was paid into escrow and

will be paid to Seaboard at the closing of the sale. The book value

of the two barges was $22,935,000 as of April 4, 2009. Seaboard

will continue to operate these two barges until the closing date of

the sale, with an estimated annual depreciation cost of

approximately $3,600,000. Seaboard will be responsible for the wind

down and decommissioning costs of the barges. Completion of the

sale is dependent upon several issues, including meeting certain

baseline performance and emission tests. Failure to satisfy or cure

any deficiencies could result in the agreement being terminated and

the sale abandoned. Seaboard could be responsible to pay liquidated

damages of up to approximately $15,000,000 should it fail to perform

its obligations under the agreement, after expiration of applicable

cure and grace periods. Seaboard will retain all other physical

properties of this business and is considering options to continue

its power business in the Dominican Republic after the sale of these

assets is completed.

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

Rating: 2.0/5 (1 vote)


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