MERRIAM, Kan. - Seaboard Corporation (NYSE American: SEB), an agribusiness and transportation company, reported a net loss for the third quarter and nine months ended September 28, 2024, contrasting with profits in the same periods last year. The company declared a quarterly cash dividend of $2.25 per share, consistent with the previous year's dividend rate.
For the three months ending September 28, 2024, Seaboard saw net sales of $2.218 billion compared to $2.388 billion for the same period in 2023. Operating income for the quarter was $32 million, a decrease from $67 million reported in the third quarter of 2023. The nine-month period showed a similar trend, with net sales totaling $6.618 billion, down from $7.280 billion in the prior year, and operating income falling to $42 million from the previous year's figure.
The company's net earnings took a significant hit, with a reported loss of $149 million for the quarter, compared to a profit of $126 million in the third quarter of the previous year. This loss was attributed to a valuation allowance of $176 million recorded on its U.S. deferred tax assets, which resulted in a substantial charge to income tax expense. Over the nine-month period, the company reported a net loss of $66 million, a stark contrast to the $162 million profit in 2023.
Despite the reported losses, Seaboard's Board of Directors authorized and declared a quarterly cash dividend of $2.25 per common share, payable on November 18, 2024, to shareholders of record as of November 8, 2024.
The company's financial results and details regarding the valuation allowance were included in its Quarterly Report on Form 10-Q, which was filed with the United States Securities and Exchange Commission. Seaboard has made this report accessible to the public on its website.
The information in this article is based on a press release statement from Seaboard Corporation.
InvestingPro Insights
Seaboard Corporation's recent financial performance, as reported in their Q3 2024 results, aligns with the challenging trends reflected in the InvestingPro data. The company's revenue for the last twelve months as of Q2 2024 stood at $9.07 billion, with a concerning revenue growth decline of 13.23% over the same period. This downward trajectory is consistent with the quarterly revenue drop mentioned in the article.
The InvestingPro data also reveals that Seaboard's gross profit margin for the last twelve months was a slim 4.43%, which helps contextualize the company's struggle to maintain profitability in a challenging market environment. This narrow margin likely contributed to the operating loss reported in the article.
An InvestingPro Tip suggests that Seaboard's dividend payments have been stable for 10 years, which is reflected in the company's decision to maintain its quarterly dividend of $2.25 per share despite the recent financial setbacks. This commitment to shareholder returns in the face of adversity could be seen as a sign of management's confidence in the company's long-term prospects.
Another relevant InvestingPro Tip indicates that Seaboard trades at a low EV/EBITDA multiple compared to near-term historical averages. This valuation metric, when considered alongside the reported losses and the substantial charge to income tax expense, may suggest that the market is pricing in the current challenges faced by the company.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips that could provide further insight into Seaboard's financial health and market position. The platform currently lists 14 more tips for SEB, which could be valuable for those looking to deepen their understanding of the company's outlook amidst its current financial difficulties.
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