EX-99.1 3 press3q.txt PRESS RELEASE OF SEABOARD CORPORATION Exhibit 99.1 PRESS RELEASE REPORT OF EARNINGS November 4, 2003 Shawnee Mission, Kansas The following is a report of earnings for Seaboard Corporation (AMEX symbol; SEB) with offices at 9000 West 67th Street, Shawnee Mission, Kansas 66202, (the "Company"), for the three and nine months ended September 27, 2003 and September 28, 2002 in thousands of dollars except per share amounts. Three Months Ended Nine Months Ended September 27, September 28, September 27, September 28, 2003 2002 2003 2002 Net sales $ 485,417 $ 429,800 $1,433,167 $1,349,827 Earnings (loss) before cumulative effect of changes in accounting principles $ 1,838 $ (5,673) $ (2,011) $ 11,148 Cumulative effect of changes in accounting for asset retirement obligations and dry-dock accruals, net of income tax expense of $550 - - 3,648 - Net earnings (loss) $ 1,838 $ (5,673) $ 1,637 $ 11,148 Earnings (loss) per share before cumulative effect of changes in accounting principles $ 1.46 $ (3.81) $ (1.60) $ 7.49 Cumulative effect of changes in accounting for asset retirement obligations and dry-dock accruals - - 2.90 - Net earnings (loss) per common share $ 1.46 $ (3.81) $ 1.30 $ 7.49 Average number of shares outstanding 1,255,054 1,487,520 1,255,054 1,487,520 Notes to Report of Earnings: Effective January 1, 2003, the Company adopted Statement of Financial Accounting Standard No. 143, which required the Company to record a long- lived asset and related liability for asset retirement obligation costs associated with the closure of the hog lagoons it is legally obligated to close. Accordingly, the Company recorded the cumulative effect of the change in accounting principle with a charge to earnings of $2,195,000 ($1,339,000 net of tax). Additionally, effective January 1, 2003, the Company changed its method of accounting for the scheduled dry-dock of vessels from the accrue-in-advance method to the direct-expense method. As a result, during the first quarter of 2003, the Company reversed the balance of the accrued liability for dry- dock maintenance as of December 31, 2002, resulting in an increase in earnings of $6,393,000 ($4,987,000 net of related tax expense). Third quarter earnings include the Company's share of impairment charges, $12,421,000, related to its 20%-owned affiliate, Fjord Seafood ASA. Fjord recognized asset impairment charges primarily related to certain inventory, fixed assets and licenses as a result of sustained low world-wide salmon prices and an unfavorable U.S. court ruling restricting the use of certain salmon genetic material and requiring extended fallowing of sites for its U.S. operations.