MERRIAM, KANSAS, US — Seaboard Corp. posted operating income of $18 million in its Commodity Trading and Milling (CT&M) segment during the first quarter ended March 30, down 58% from $43 million in the same quarter a year ago.

Seaboard said the decrease in operating income primarily reflected the change of $35 million in mark-to-market adjustments on derivative contracts.

Had Seaboard not applied mark-to-market accounting to its derivative instruments, operating income in the segment would have been $46 million, up from $36 million in the same period a year ago.

Net sales for the segment during the most recent quarter totaled $1.19 billion, down 11% from $1.34 billion in the same period a year ago. The decrease primarily reflected lower average sales prices, which decreased sales $306 million, partially offset by higher volumes sold, which increased sales $152 million, Seaboard said.

In an April 30 filing with the US Securities and Exchange Commission, Seaboard said it invested $104 million in property, plant and equipment in the first quarter of fiscal 2024, of which $87 million was in the Pork segment. For the remainder of 2024, Seaboard said management has budgeted capital expenditures totaling $424 million.

Overall, Seaboard in the first quarter posted net income of $22 million, equal to $22.66 per share on the common stock, which compared with a loss of $16 million in the same period a year ago. Net sales were $2.19 billion, down 12% from $2.5 billion in the same period a year ago.