For the first six months of fiscal 2011, operating income in the division totaled $38,302,000, down 9% from $42,157,000. Excluding mark-to-market adjustments, operating income in the first half was $28,500,000, up 26% from $22,700,000.
Division sales totaled $621,007,000 in the second quarter, up 53% from $405,633,000. For the first half, sales rose 64% to $1,333,238,000 from $813,736,000.
“The increases are primarily the result of increased prices for wheat and corn, and, to a lesser extent, increased volume of commodities sold to third parties,” Seaboard said in an Aug. 10 filing with the Securities and Exchange Commission.
In the company’s Sugar segment, operating income totaled $21,586,000 in the second quarter, up 126% from $9,500,000 in the same period of fiscal 2010. For the first half, operating income rose to $44,025,000 from $20,822,000. Seaboard said the increases reflected higher margins from the increase in sugar prices. Going forward, Seaboard said it expects positive operating income for the segment for the remainder of fiscal 2011 but cautioned that a labor strike that began at a sugar mill in late July may result in a shorter harvest season and may have an impact on anticipated operating results.
Net sales for the Sugar segment in the second quarter rose 61% to $72,594,000 from $45,036,000, and for the first half climbed 41% to $139,597,000 from $98,858,000.
Overall, Seaboard Corp. net income in the second quarter was $113,486,000, equal to $93.34 per share on the common stock, up 46% from $77,604,000, or $63.21 per share, in the second quarter of fiscal 2010. Net sales for the quarter totaled $1,398,587,000, up 33% from $1,048,463,000 in the same period last year. For the first six months net income was $230,350,000, or $189.45 per share, up sharply from $140,382,000, or $114.02 per share. Net sales totaled $2,866,766,000, up 39% from $2,068,739,000.