EX-99.1 2 ex99-1.txt PRESS RELEASE OF SEABOARD CORPORATION Exhibit 99.1 PRESS RELEASE REPORT OF EARNINGS May 7, 2004 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 months ended April 3, 2004 and March 29, 2003, in thousands of dollars except per share amounts. Three Months Ended April 3, March 29, 2004 2003 Net sales $ 615,675 $ 461,867 Earnings (loss) before cumulative effect of changes in accounting principles 27,377 (933) 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 $ 27,377 $ 2,715 Earnings (loss) per share before cumulative effect of changes in accounting principles $ 21.81 $ (0.74) Cumulative effect of changes in accounting for asset retirement obligations and dry-dock accruals - 2.90 Net earnings per common share $ 21.81 $ 2.16 Average number of shares outstanding 1,255,054 1,255,054 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) or $1.07 per common share. 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 tax) or $3.97 per common share.