MERRIAM, KANSAS, US — Seaboard Corp. posted operating income of $17 million in its Commodity Trading and Milling (CT&M) segment during the second quarter ended July 1, down 44% from $30 million in the same quarter a year ago.

Seaboard said the decrease in operating income primarily reflected lower margins resulting from lower volumes and sales prices.

Had Seaboard not applied mark-to-market accounting to its derivative instruments, operating income in the segment would have been $31 million, down from $39 million in the same period a year ago.

Net sales for the segment during the most recent quarter totaled $1.34 billion, down 22% from $1.71 billion in the same period a year ago. The decrease primarily reflected lower volumes of certain commodities sold related to increased competition and market dynamics as well as lower average sales prices as a result of commodity price fluctuations, Seaboard said.

In an Aug. 1 filing with the US Securities and Exchange Commission, Seaboard said it invested $219 million in property, plant and equipment in the first half of fiscal 2023, of which $151 million was in the Pork segment and $58 million was in the Marine segment. For the remainder of 2023, Seaboard said management has budgeted capital expenditures totaling $390 million.

Overall, Seaboard in the second quarter posted net income of $52 million, equal to $44.80 per share on the common stock, down 52% from $108 million, or $92.53 per share, in the same period a year ago. Net sales were $2.39 billion, down 20% from $2.97 billion in the same period a year ago.