Net sales for the segment during the second quarter were $707 million, down 9% from $779 million in the same period of last year. The decrease primarily reflected lower sales prices, resulting from lower commodity prices, and the mix of products sold, partially offset by higher volumes in corn, soybeans and wheat, the company said.
For the six months ended July 2, operating income was $28 million, which compared with $12 million in the same period a year ago. Net sales totaled $1.416 billion, down from $1.599 billion.
In the Aug. 10 filing with the U.S. Securities and Exchange Commission, Seaboard said it invested $96 million in property, plant and equipment during the second quarter, of which $33 million was for the CT&M segment.
“Of the Commodity Trading and Milling segment expenditures, $29 million was for the construction of two dry bulk vessels, of which both were delivered and then sold and leased back by Seaboard, at book value of $44 million each during the first quarter of 2016,” the company noted in the filing.
Seaboard also said in the filing it has budgeted capital expenditures totaling $118 million for the remainder of 2016.
“The Commodity Trading and Milling segment plans to spend $26 million primarily for a new wheat mill in Zambia and other improvements to existing facilities and related equipment,” Seaboard said.
Overall, net income at Seaboard in the second quarter totaled $80 million, equal to $68.34 per share on the common stock, up from $32 million, or $27.04 per share, in the same period a year ago. Net sales were $1.357 billion, down from $1.428 billion. For the six months ended July 2, net income was $134 million, or $114.25 per share, up from $65 million, or $55.15 per share, in the same period a year ago. Net sales for the six months totaled $2.676 billion, down from $2.880 billion.