SEABOARD CORP /DE/
For the period ended Mar 29, 2025. Filed Apr 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed Apr 28, 2025
SEB$3,528.16+3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-10-29.
0000088121-24-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-04-28.
0000088121-25-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 44 current paragraphs.
14 unchanged; 9 reworded; 20 added; 24 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
The primary objectives of Seaboard’s financing strategy are to effectively manage financial risks, ensure efficient liquidity for daily global operations and maintain balance sheet strength. Seaboard’s principal funding sources are generated from operating activities, short-term investments and borrowings from revolving lines of credit and term loans. Seaboard’s cash requirements include funding for working capital, capital expenditures, strategic investments and other needs. Seaboard evaluates its overall liquidity at least on a quarterly basis, and management believes Seaboard’s combination of internally-generated cash, liquidity and borrowing capabilities will be adequate to meet all short-term and long-term commitments.
Current report
During the first quarter of 2025, Seaboard entered into a collateralized uncommitted line of credit agreement with up to $100 million of borrowing availability that is secured by certain eligible accounts receivable and matures on March 14, 2026. Also, Seaboard reduced its borrowing capacity under the committed line of credit from $450 million to $300 million and extended the maturity date to March 23, 2026. See Note 4 to the condensed consolidated financial statements for more discussion. Seaboard will continue to evaluate opportunities to access efficient financing in the markets where it operates, leveraging low-cost funding to support its operations.
Current report
Seaboard had long-term debt of $1.0 billion as of March 29, 2025, which included a Term Loan due 2033 of $963 million. Current maturities of long-term debt were $11 million as of March 29, 2025.
Current report
Cash used in operating activities was $20 million for the first quarter of 2025, compared to cash provided by operating activities of $19 million for 2024. The change in operating activities cash flows was due to less cash generated from working capital of $115 million, partially offset by an increase in net earnings, adjusted for non-cash items, of $65 million. The decrease in cash generated from working capital was primarily inventory-related due to timing of sales and inventory purchases in Seaboard’s CT&M segment. This segment primarily handles large shipments of grain and the associated timing of deliveries can result in significant working capital fluctuations across periods.
Current report
Cash used in investing activities was $55 million for the first quarter of 2025, compared to $113 million for 2024. During the three months ended March 29, 2025, Seaboard invested $109 million in property, plant and equipment, of which $74 million was in the Marine segment, consisting primarily of installment payments on vessels under construction. The payments for these vessels are made in accordance with milestones achieved throughout construction. One new dual-fueled vessel was completed and delivered during the first quarter of 2025, and five others are expected to be completed and delivered during the remainder of 2025. Cash flows from investing activities for short-term investments are part of
Current report
Cash provided by financing activities was $62 million for the first quarter of 2025, compared to $119 million for 2024. Cash flows from financing activities primarily include draws and repayments under committed and uncommitted revolving facilities held with financial institutions across multiple jurisdictions and currencies. The daily needs for working capital primarily influence changes in Seaboard’s borrowing balances.
Current report
Capital Expenditures and Other Cash Requirements
Current report
Seaboard’s operations are heavily commodity-driven and financial performance for certain subsidiaries is very cyclical based on respective global commodity markets and trends in economic activity. Subsequent to the first quarter of 2025 period end, the U.S. government has imposed, and is considering imposing, additional tariffs and trade restrictions on certain goods. In response to these actions, certain countries have imposed, or are considering imposing, tariffs on certain goods produced in the U.S. Such activity has resulted in volatile commodity markets and uncertain global economic conditions which directly negatively impact some segments and indirectly other segments. The risk of additional tariffs, trade restrictions by the U.S. and other countries, and the status of certain trade agreements is uncertain and continues to evolve. Seaboard cannot be certain of the outcome, which could adversely impact its financial condition and results of operations. See Item 1A. Risk Factors for further discussion.
Current report
Net sales for the three-month period of 2025 increased $125 million compared to the same period in 2024. The increase primarily reflected higher sales of $71 million in the Marine segment due to higher voyage revenue, $35 million in the CT&M segment driven by higher volumes of commodities sold and $34 million in the Liquid Fuels segment from increased volumes of fuel and environmental credits sold. See the net sales discussion by reportable segment below for more details.
Current report
Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusts for discrete items recorded during the period. The effective tax rate for the three-month period of 2025 increased compared to the three-month period of 2024 primarily as a result of a decrease in the amount of investment tax credits generated and the impact of incremental Pillar Two taxes. The Organization for Economic Cooperation released Pillar Two as part of its Base Erosion and Profit Shifting initiative to ensure large multinational companies pay a minimum level of tax on the income arising in each jurisdiction where they operate. The adoption and effective dates of these rules vary by country and the rules include some temporary safe harbors. Several countries in which Seaboard operates enacted Pillar Two laws in 2024, and additional countries in which Seaboard has material operations, including the Isle of Man and The Bahamas, adopted Pillar Two rules effective in 2025. These jurisdictions had effective tax rates that were lower than 15% prior to implementing the new rules. Seaboard will continue to monitor legislative developments related to Pillar Two in the countries in which it operates and the potential impact on future results.
Current report
The decrease in net sales for the three-month period of 2025 compared to 2024 was driven by lower volumes of market hogs and pork products sold, primarily due to timing of deliveries to the processing plants, which each decreased sales $18 million, partially offset by higher selling prices.
Current report
The decrease in operating income for the three-month period of 2025 compared to 2024 reflected lower margins on pork products and market hogs sold, due to favorable adjustments to the lower of cost and net realizable value inventory reserve during the first quarter of 2024 with no adjustments in 2025, and an increase in legal claims expense. With improved pork prices and lower grain commodity costs, the inventory reserve decreased $39 million during the first quarter of 2024. This decrease in operating income was partially offset by lower feed costs of $57 million due to price and volume. Based on current uncertainties with tariffs, and as it is difficult to predict market prices for pork products, including the indirect impact of tariffs, management is uncertain whether the Pork segment will be profitable for the remainder of 2025. In April 2025, in response to U.S.-issued trade tariffs, China issued a series of escalating retaliatory tariffs on U.S. products, including pork. China has historically been an outlet for certain of Seaboard’s pork products, and represented 3% of this segment’s total sales for the year ended December 31, 2024. Additionally, the future remains uncertain with respect to tariffs that could originate in other pork export destinations. See Item 1A. Risk Factors for further discussion of risks associated with tariffs.
Current report
The increase in net sales for the three-month period of 2025 compared to 2024 was primarily due to a 12% increase in cargo volumes and an 8% increase in average freight rates. The increase in average freight rates was partially driven by an increase in refrigerated cargo, which earns higher rates.
Current report
The increase in operating income for the three-month period of 2025 compared to 2024 was primarily the result of higher voyage revenue, partially offset by higher voyage-related costs, such as stevedoring costs primarily due to higher cargo volumes. Many of this segment’s costs are variable in nature and the overall expense amounts will fluctuate as volumes increase or decrease. While management anticipates this segment will be profitable for the remainder of 2025, it is difficult to predict changes in fuel costs or other voyage costs, cargo volumes or cargo rates for future periods. In April 2025, the Office of the U.S. Trade Representative (“USTR”) issued a Notice of Action finalizing fees for Chinese-built vessels and Chinese-owned and operated ships for U.S. port calls. Due to certain fee exemptions, including an exemption based on vessel capacity, management believes the Notice of Action will not have any material adverse impact on the Marine segment’s results. See Item 1A. Risk Factors for further discussion of USTR’s Notice of Action.
Current report
The increase in net sales for the three-month period of 2025 compared to 2024 reflected an increase in the price and volume of fuel sold of $20 million and $19 million, respectively. Fuel production increased due to consistent production at the renewable diesel plant during the first quarter of 2025 compared to no operations during the first quarter of 2024 due to repairs and maintenance. Environmental credits sold increased sales $25 million due to higher volumes of credits, partially offset by decreases in credit prices reducing sales $11 million. Also, sales decreased $19 million related to federal blender’s credits received in the first quarter of 2024 compared to none in 2025. With the passing of the Inflation Reduction Act of 2022, the federal blender’s credit expired December 31, 2024 and was replaced by a new clean fuel production tax credit that is recorded as a reduction to cost of sales.
Current report
The decrease in operating loss for the three-month period of 2025 compared to 2024 primarily reflected an increase in sales, partially offset by higher costs associated with more production and, to a lesser extent, less income received on production tax credits as compared to the federal blender’s credits. The production tax credit value varies based on the greenhouse gas emissions factor of fuel produced and the value is less than the federal blender’s credit on a per-gallon basis. While management anticipates this segment will be near break-even for the remainder of 2025, it is difficult to predict market prices for biodiesel, renewable diesel, environmental credits, production tax credits or the cost of feedstocks for future periods. This segment’s renewable diesel plant is expected to undergo regularly scheduled maintenance in the second quarter of 2025 and anticipates no production for approximately one month.
Current report
The increase in net sales for the three-month period of 2025 compared to 2024 reflected primarily more power generation due to less maintenance performed on the units.
Current report
The Turkey segment represents Seaboard’s non-controlling 52.5% investment in Butterball, LLC (“Butterball”) which is accounted for using the equity method. The decrease in Butterball’s net income was primarily the result of a 9% increase in production and plant costs due to bird health issues. Sales were relatively flat with increased volumes being offset by a decrease in selling prices. Turkey commodity markets continued to strengthen through the quarter. During the first quarter of 2025, Butterball closed a further-processing plant in Jonesboro, Arkansas. The closure did not have a material impact on results during the first quarter of 2025, and it is not anticipated to have a material impact on future results. While management anticipates this segment will be profitable for the remainder of 2025, it is difficult to predict market prices for turkey products or the cost of feed for future periods.
Current report
As of March 29, 2025 and December 31, 2024, Butterball had total assets of $1.2 billion and $1.1 billion, respectively. Butterball’s summarized income statement information was as follows:
Current report
CRITICAL ACCOUNTING ESTIMATES
Removed paragraphs (24)
Previous report
Management believes Seaboard’s combination of internally generated capital resources and borrowing capabilities will be adequate for its existing operations and any currently known potential plans for expansion of existing operations in both the short-term and long-term.
Previous report
Cash provided by operating activities decreased $362 million for the nine months ended September 28, 2024, compared to the same period in 2023. The decrease in cash generated from working capital was $361 million on a net basis. The working capital changes primarily reflected a decrease in cash flows from receivables of $267 million due to timing of collections, a decrease in cash flows for inventories due to lower commodity prices of $48 million and an increase in cash flows related to payments of other liabilities of $35 million. The change in earnings, adjusted for non-cash items, including the valuation allowance adjustment of $176 million to offset U.S. deferred tax assets for the nine-months ended September 28, 2024, was not significant period-over-period.
Previous report
Cash flows from financing activities primarily include draws and repayments on lines of credit. Seaboard’s lines of credit are used to fund working capital and investments in capital expenditures, as needed. The primary long-term debt outstanding is a Term Loan due in 2033 with a balance of $968 million as of September 28, 2024.
Previous report
Beginning in the second quarter of 2024, Liquid Fuels became a separate reportable segment and the former Sugar and Alcohol segment became part of All Other. The historical periods presented have been recast to reflect these changes. See Note 7 to the condensed consolidated financial statements for further discussion.
Previous report
Net sales decreased $170 million and $662 million for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023. The decrease for the three-month period primarily reflected a decline of $138 million in CT&M segment sales due to lower prices of commodities sold. The decrease for the nine-month period primarily reflected a decline of $496 million in CT&M segment sales due to lower prices of commodities sold, partially offset by higher volumes sold, a decline in Marine segment sales of $156 million due to lower freight rates, and a decline in Liquid Fuels segment sales of $143 million due to lower prices of environmental credits sold. The decreases were partially offset by an increase in Pork segment sales of $162 million due primarily to higher volumes of pork products and market hogs sold. See the net sales discussion by reportable segment below for more details.
Previous report
Selling, General and Administrative Expenses
Previous report
Selling, general and administrative expenses increased $7 million and $16 million for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023, primarily due to higher personnel costs, partially offset by the final adjustment to the contingent consideration liability recognized and paid during the third quarter of 2023.
Previous report
Interest Expense
Previous report
Interest expense increased $12 million and $9 million for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023. The increase for the three-month period was primarily due to higher interest rates on more outstanding debt and a decrease in capitalized interest on construction in progress. In November 2023, Seaboard amended its Term Loan Credit Agreement and increased the principal amount from $700 million to $975 million. The increase for the nine-month period primarily related to higher interest rates on more outstanding debt, partially offset by an increase in capitalized interest on construction in progress.
Previous report
Foreign Currency Gains (Losses), Net
Previous report
Foreign currency gains, net decreased $9 million and $24 million for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023, primarily due to fluctuations in the South African rand.
Previous report
The effective tax rate for the three- and nine-month periods of 2024 was higher as compared to the same periods of 2023 primarily due to a valuation allowance on U.S. deferred tax assets recorded during the third quarter of 2024, partially offset by increased federal and state tax credits. As a result of establishing the valuation allowance against the U.S. deferred tax asset balances, Seaboard was unable to recognize a benefitof its year-to-date domestic losses and certain tax credits. See Note 8 to the condensed consolidated financial statements for additional information on factors that contributed to the valuation allowance during the third quarter of 2024. Seaboard has a history of using tax credits before they expire, and although U.S. GAAP required Seaboard to record a valuation allowance based on past results, management currently believes that these deferred tax assets will be realized in the future over time, although there can be no assurance as to the timing or if these will be realized at all. Seaboard’s federal tax credits have long carryforward periods that expire between 2042 and 2044. Despite recent pre-tax book losses in the U.S. operations as a result of challenging commodity conditions, Seaboard has no federal net operating loss carryforwards.
Previous report
In 2021, the Organisation for Economic Co-operation and Development released Pillar Two Model Rules (“Pillar Two”). The model is designed to ensure large multinational enterprises pay a minimum level of tax on the income arising in each jurisdiction where they operate. The rules include transitional safe harbors that provide temporary exemption of operations in some jurisdictions if certain criteria are met. Some foreign jurisdictions in which Seaboard operates enacted Pillar Two legislation effective in 2024, but the impact will not be material to Seaboard in 2024. Seaboard is continuing to monitor legislative developments across relevant jurisdictions and the potential impact on future results.
Previous report
For the three-month period of 2024, higher volumes of pork products and market hogs sold contributed sales of $31 million and were offset by a decrease in the market price, reducing sales $32 million. Renewable natural gas sales increased, but sales are currently not significant. For the nine-month period of 2024, higher volumes of pork products and market hogs sold contributed sales of $102 million and higher market prices contributed to an increase in sales of $34 million.
Previous report
The increase in operating income for the three- and nine-month periods of 2024 reflected higher margins on pork products and market hogs sold, primarily due to higher sales and lower hog production costs, including lower feed costs of $41 million and $141 million, respectively, and mark-to-market gains on derivative contracts. Also, inventory adjustments to the lower of cost and net realizable value (“LCNRV”) reserve resulted in a decrease of $9 million and an increase of $44 million in operating income for the three- and nine-month periods of 2024, respectively, based on a comparison of changes to the reserve per market prices at each respective period end. Inventory adjustments to the LCNRV reserve were necessary since the third quarter of 2022 to properly state the hog inventory balances at quoted future market prices for pork products and grain costs. With more favorable pork prices and lower grain commodity costs, the LCNRV reserve was not needed for the second and third quarter of 2024. Management is unable to predict market prices for pork products, the cost of feed or third-party hogs for future periods; however, based on current conditions, management anticipates this segment to be profitable for the remainder of 2024.
Previous report
The decrease in sales for the three-month period of 2024 was due to lower market prices and volumes of environmental credits sold of $36 million and $9 million, respectively, partially offset by an increase in fuel sales of $19 million. Higher volumes of fuel sold increased sales $49 million, partially offset by lower prices which decreased sales $29 million. The increase in fuel volumes sold was primarily a result of consistent production at the renewable diesel plant during the third quarter of 2024. The decrease in sales for the nine-month period of 2024 was due to lower environmental credits sales and fuel sales of $94 million and $49 million, respectively. The decrease in environmental credit sales was primarily the result of lower market prices which decreased sales $88 million. As the renewable diesel plant was not operational for approximately four months during the first half of 2024 due to maintenance and repairs, fuel sales were impacted. Lower volumes of fuel sold decreased sales $30 million.
Previous report
Operating income decreased for the three- and nine-month periods of 2024 primarily due to a decrease in margins of $28 million and $71 million, respectively. Margins decreased for the three-month period due to lower sales prices and higher production costs on fuel gallons sold. The decrease for the nine-month period primarily reflected lower sales, partially offset by a decrease in production costs. Management is unable to predict market prices for biodiesel, renewable diesel, environmental credits, or the cost of feedstocks for future periods; however, based on current market conditions with lower renewable diesel and biodiesel prices and higher animal fat feedstock costs, management is uncertain whether this segment will be profitable for the remainder of 2024. Commodity markets are volatile, and management believes that current industry economic conditions are temporary.
Previous report
With the passing of the Inflation Reduction Act of 2022, the federal blender’s credits are expected to expire after December 31, 2024. A new clean fuel production credit will replace the federal blender’s credits starting in 2025 with value based on the greenhouse gas emissions factor of fuel produced and sold. This clean fuel production credit is expected to be less than the federal blender’s credit; however regulatory guidance is pending in order to implement this new credit. For the nine-month periods of 2024 and 2023, the federal blender’s credits included in sales was $88 million and $82 million, respectively.
Previous report
CT&M’s investments in affiliates are represented by numerous milling, feed and protein affiliates, with no individual investment representing a material fluctuation. The increase in income from affiliates for the three- and nine-month periods of 2024 was primarily due to higher margins with lower commodity costs.
Previous report
The decrease in sales for the three- and nine-month periods of 2024 was due to an overall decline in average freight rates due to competitive pressures, partially offset by an increase in cargo volumes. Cargo volumes increased 9% and 5% for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023.
Previous report
The decrease in operating income for the three-month period of 2024 was primarily the result of lower voyage revenue and an increase in voyage-related costs primarily due to the increase in cargo volumes and rates of some services received, such as stevedoring. The decrease in operating income for the nine-month period of 2024 was primarily the result of lower voyage revenue. An increase in stevedoring and terminal costs was offset by lower charter-hire costs. Management cannot predict changes in fuel costs or other voyage costs, cargo volumes or cargo rates for future periods; however, management anticipates this segment will be profitable for the remainder of 2024.
Previous report
The decrease in sales for the three-month period of 2024 primarily reflected lower spot market rates due to lower fuel prices. The decrease in sales for the nine-month period of 2024 primarily reflected less power generation due to repairs and maintenance conducted during 2024.
Previous report
The Turkey segment represents Seaboard’s 52.5% investment in Butterball, which is accounted for using the equity method. Butterball’s net income decreased $28 million and $78 million for the three- and nine-month periods of 2024, compared to the same periods in 2023, respectively. The decrease in net income was primarily due to a decrease in sales of $50 million and $139 million for the three- and nine-month periods of 2024, respectively, due to weaker pricing, partially offset by lower production costs. The average selling price decreased 10% and 8% for the three- and nine-month periods of 2024, respectively, primarily due to lower market prices. Sales volumes did not have a significant impact on the results of the three-and nine-month periods. Management is unable to predict market prices for turkey products or the cost of feed for future periods; however, management anticipates this segment will be profitable for the remainder of 2024.
Previous report
CRITICAL ACCOUNTING ESTIMATE
Reworded paragraphs (9)
Previous wording
This Management Discussion and Analysis is provided as a supplement to, and should be read in conjunction with, Seaboard’s consolidated financial statements and the accompanying notes included in this quarterly report on Form 10-Q and within Seaboard’s annual report on Form 10-K filed for the year ended December 31, 2023. Certain statements in this report contain forward-looking statements. See the section entitled “Forward-looking Statements” for more information on these forward-looking statements, including a discussion of the most significant factors that could cause actual results to differ materially from those in the forward-looking statements.
Current wording
This Management Discussion and Analysis is provided as a supplement to, and should be read in conjunction with, Seaboard’s consolidated financial statements and the accompanying notes included in this quarterly report on Form 10-Q and within Seaboard’s 2024 10-K. Certain statements in this report contain forward-looking statements. See the section entitled“Forward-looking Statements” for more information on these forward-looking statements, including a discussion of the most significant factors that could cause actual results to differ materially from those in the forward-looking statements.
Previous wording
As of September 28, 2024, $87 million of the $1.2 billion of cash and short-term investments were held by Seaboard’s foreign subsidiaries. Historically, Seaboard has considered substantially all foreign profits as being permanently invested in its foreign operations, including all cash and short-term investments held by foreign subsidiaries. During 2022, Seaboard reversed its indefinite reinvestment assertion in connection with certain previously-taxed undistributed earnings of its Seaboard Marine subsidiary due to the tax effectiveness of repatriating. For all other foreign subsidiaries, Seaboard intends to continue permanently reinvesting their funds outside the U.S. as they continue to demonstrate no need to repatriate them to fund Seaboard’s U.S. operations for the foreseeable future. As a result, Seaboard has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation of these funds to the U.S. Determination of the tax that might be paid on unremitted earnings if eventually remitted is not practical due to the complexity of the multi-jurisdictional tax environment in which Seaboard operates.
Current wording
As of March 29, 2025, Seaboard had cash and short-term investments of nearly $1.1 billion and total net working capital of $1 billion. Of the total cash and short-term investments balance, $90 million was held by foreign subsidiaries. Seaboard considers substantially all foreign profits permanently reinvested in its foreign operations, except for previously-taxed undistributed earnings of Seaboard Marine. For all other foreign subsidiaries, Seaboard intends to continue permanently reinvesting their funds outside the U.S. as they continue to demonstrate no need to repatriate them to fund Seaboard’s U.S. operations for the foreseeable future. Seaboard has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation of these funds to the U.S. as determination of the tax is not practical due to the complexity of the multi-jurisdictional tax environment in which Seaboard operates.
Previous wording
Liquidity includes cash and cash equivalents, short-term investments and available borrowing capacity under lines of credit facilities. As of September 28, 2024, Seaboard had cash and short-term investments of nearly $1.2 billion and total net working capital of $874 million. The following table presents a summary of Seaboard’s available borrowing capacity under lines of credit.
Current wording
The following table presents a summary of Seaboard’s available borrowing capacity under lines of credit.
Previous wording
Cash flows from investing activities for short-term investments are part of Seaboard’s overall liquidity management strategy. Short-term investment purchases are a result of the investment of excess cash, asset allocation from the active management of the portfolio and re-investment of matured securities. Proceeds from the sale of short-term investments may be used to fund working capital needs and capital expenditure purchases. During the nine months ended September 28, 2024, Seaboard invested $373 million in property, plant and equipment, including biogas recovery projects in the Pork segment and installment payments on vessels under construction in the Marine segment and other investments. At certain hog farms, the Pork segment is constructing biogas recovery facilities to capture methane from its hog lagoons and inject it as renewable natural gas into the local pipeline infrastructure. One dual-fueled vessel was completed and delivered during the third quarter of 2024, and another vessel is expected to be completed during the fourth quarter of 2024. For the remainder of 2024, management has budgeted capital expenditures totaling approximately $165 million. Management anticipates paying for these capital expenditures from a combination of available cash, proceeds from the sale of available short-term investments and Seaboard’s available borrowing capacity.
Current wording
Seaboard’s overall liquidity management strategy. Short-term investment purchases are a result of the investment of excess cash, asset allocation from the active management of the portfolio and re-investment of matured securities.
Previous wording
Operating income decreased $35 million and increased $42 million for the three- and nine-month periods of 2024, respectively, compared to the same periods in 2023. The decrease for the three-month period primarily reflected a decline in operating income in the Liquid Fuels and Marine segments of $30 million and $41 million, respectively, partially offset by an increase in Pork segment operating income of $52 million. The increase in operating income for the nine-month period primarily reflected an increase in Pork segment operating income of $334 million due to higher margins on the sale of pork products and market hogs, partially offset by a $164 million decrease in Marine segment operating income due to lower voyage revenue, and a $75 million decrease in Liquid Fuels segment operating income. See the operating income discussion by reportable segment below for more details.
Current wording
Operating income increased $58 million for the three-month period of 2025 compared to the same period in 2024. The change primarily reflected an increase of $42 million in Marine segment operating income due to higher voyage revenue, and $23 million in both the CT&M and Liquid Fuels segments driven primarily by mark-to-market adjustments on derivative contracts and higher margins on products sold, respectively. The increases were partially offset by a $32 million decrease in Pork segment operating income due to lower margins of pork products and market hogs sold. See the operating income discussion by reportable segment below for more details.
Previous wording
The decrease in sales for the three- and nine-month periods of 2024 was primarily due to lower average sales prices of commodities sold which decreased sales $212 million and $753 million, respectively. The decrease was partially offset by higher volumes sold, which increased sales $74 million and $257 million for the three- and nine-month periods, respectively. Sales prices for many of Seaboard’s products are directly affected by both domestic and worldwide supply and demand for commodities and competing products, all of which are determined by constantly changing market forces.
Current wording
Net sales increased for the three-month period of 2025 compared to 2024, primarily due to higher volumes of commodities sold, which increased sales $180 million, partially offset by lower average sales prices, which decreased sales $145 million. Sales prices for many of Seaboard’s products are directly affected by both domestic and worldwide supply and demand for commodities and competing products, all of which are determined by constantly changing market forces.
Previous wording
The slight decrease in operating income for the three-month period of 2024 primarily reflected lower margins related to the decline in sales prices. The decrease in operating income for the nine-month period of 2024 reflected an increase of $22 million in mark-to-market losses on derivatives contracts, partially offset by higher margins due to lower commodity costs. Due to worldwide commodity price fluctuations, the uncertain political and economic conditions in the countries in which this segment operates and the volatility in the commodity markets, management is unable to predict sales and operating results for this segment for future periods; however, management anticipates this segment will be profitable for the remainder of 2024, without the effects of mark-to-market adjustments on derivative contracts that cannot be predicted.
Current wording
Operating income increased for the three-month period of 2025 compared to 2024, primarily due to an increase of $38 million in mark-to-market gains on derivative contracts, partially offset by lower margins on certain commodities sold. While management anticipates positive operating income, excluding the effects of mark-to-market adjustments, for this segment for the remainder of 2025, it is difficult to predict worldwide commodity price fluctuations and the uncertain political and economic conditions in the countries in which this segment operates.
Previous wording
The decrease in operating income for the three- and nine-month periods of 2024 primarily reflected lower revenue. During the nine-month period of 2024, lower fuel costs were offset by an increase in maintenance costs. Management cannot predict fuel costs or the extent that spot market rates will fluctuate compared to fuel costs or other power producers for future periods; however, management anticipates this segment will be profitable for the remainder of 2024. While EDM II, the barge that began operations in 2012, remains in operation in the Dominican Republic, Seaboard continues to explore strategic alternatives for this barge, including a sale or relocation.
Current wording
Operating income remained flat for the three-month period of 2025 compared to 2024, as the increase in net sales was offset by higher fuel costs due to an increase in volumes. While management anticipates this segment will be profitable for the remainder of 2025, it is difficult to predict fuel costs or the extent that spot market rates will fluctuate compared to fuel costs or other power producers for future periods.
Previous wording
The preparation of Seaboard’s condensed consolidated financial statements requires Seaboard to make estimates, judgments, and assumptions. A summary of significant accounting policies and the critical accounting estimate is included in Seaboard’s annual report on Form 10-K for the year ended December 31, 2023. There were no changes to significant accounting policies or the critical accounting estimate during the nine months ended September 28, 2024.
Current wording
The preparation of Seaboard’s condensed consolidated financial statements requires Seaboard to make estimates, judgments, and assumptions. A summary of significant accounting policies and critical accounting estimates is included in Seaboard’s 2024 10-K. Other than the update to significant accounting polices discussed in Note 1 to the condensed consolidated financial statements, there were no other changes to significant accounting policies or critical accounting estimates during the three months ended March 29, 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the remainder of 2025, management has budgeted capital expenditures totaling approximately $451 million. The Marine segment planned expenditures include primarily installment payments on vessels under construction. The Pork segment planned expenditures are primarily for normal replacement of breeding herd and other investments. Management anticipates paying for these capital expenditures from a combination of available cash, the use of available short-term investments and Seaboard’s available borrowing capacity. There are no material updates to our obligations as discussed in the 2024 10-K.