United states-pork giant has bad year.
Seaboard Corp. says it incurred a $45.9 million operating loss during 2008 in its pork segment. The company had an operating income of $39.5 million in 2007. Sales for 2008 increased to $1.126 billion from $1.004 billion in 2007.
Seaboard said higher feed costs and start-up costs of its biodiesel plant contributed to the company’s operating loss. The increased sales were due to an expansion of its pork processing plant in Guymon, Okla., and an increase in slaughter capacity.
"Absent another year of extreme market volatility during 2009, management anticipates this segment’s results to improve to profitable levels after the first quarter of 2009," according to the company’s annual report stated. It cited, however, vulnerability to future exports due to a global economic slowdown.
Construction was completed on Seaboard’s biodiesel facility in Guymon, Okla. during the second quarter of 2008. "We experienced some operational difficulties and incurred negative margins for the year, but we expect better results in 2009," says Steven Bresky, Seaboard president and chief executive officer. He also noted the company’s efforts that will allow future biofuel shipments to European markets.
