World Grain - December 2011 - 14

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Noble reports third-quarter loss, CEO resigns
HONG KONG, CHINA — Following Noble Group Ltd.’s ﬁrst reported loss in nearly 14 years, Chief Executive Ofﬁcer (CEO) Ricardo Leiman resigned on Nov. 9. Chairman and founder Richard Elman will be acting CEO until talks with Leiman’s unidentiﬁed replacement are completed, the Singapore-listed supplier of energy, food and mining commodities said in a statement after the market closed. Noble reported a third-quarter net loss of $17.5 million, compared with a proﬁt of $157.2 million a year earlier. The company attributed the loss to volatility from the worldwide economic situation, exceptional market conditions, particularly in the cotton sector, and adverse weather in Brazil that impacted the company’s key agriculture segment. Third-quarter sales jumped 40% to $20.9 billion, with a 34% increase in the volume of traded goods. Operating income from Noble’s supply chain almost halved to $242 million in the third quarter from a year earlier. Finance and administrative costs rose and the company posted a $207.7 million net loss on cash ﬂow hedging and a $39.3 million markdown on longterm investments.

Deadly Kansas grain explosion started in main bin
ATCHISON, KANSAS, U.S. — The Bartlett Grain Co. elevator explosion in Atchison, Kansas, U.S. that killed six men on Oct. 29 was an accident that started in the main bin area, according to a preliminary report from the State Fire Marshal’s ofﬁce, the Kansas City Star reported on Nov. 10. A ﬁnal report is not complete because debris still needs to be removed from the elevator, and ﬁre is smoldering in the bin areas. At the time of the explosion, the bins were about two-thirds full of mostly corn. Workers were loading grain onto a train in that area when the explosion occurred, according to the ﬁre marshal. The Occupational Safety and Health Administration (OSHA) is conducting a separate investigation into the explosion, which may not be ﬁnished for several months, the newspaper reported. Bartlett ofﬁcials have said the company plans to rebuild the facility, but has not given a timeframe for the construction. The blast killed four Bartlett employees, John Burke, 24, of Denton, and Ryan Federinko, 21, Curtis Field, 21, and Chad Roberts, 20, all of Atchison, and two private grain inspectors, Travis Keil, 34, of Topeka, and Darrek Klahr, 43, of Wetmore. Pat Maxwell remains in critical condition at the University of Kansas Hospital. Clinton Ellerman, who was seriously injured in the explosion, has been released from the hospital, the newspaper reported.

Seaboard Corp.’s third-quarter earnings slip
MERRIAM, KANSAS, U.S. — Net income of Seaboard Corp. in the three months ended Oct. 1 was $36,560,000, equal to $30.07 per share on the common stock, down 8% from $39,869,000, or $32.74 per share in the third quarter of 2010. Net sales were $1,476,718,000, up 33% from $1,111,813,000. Net sales for Seaboard’s Commodity Trading and Milling segment increased $258.9 million and $778.4 million for the three and nine month periods of 2011, respectively, compared to the same periods in 2010. Seaboard said these increases were primarily the result of increased prices for wheat and corn, and increased volumes of commodities sold to both third parties and non-consolidated afﬁliates. In addition, $101.1 million in net sales were recognized in the ﬁrst quarter of 2011 related to previously deferred costs and deferred revenues under contracts for which the ﬁnal sale prices were not ﬁxed and determinable until the ﬁrst quarter of 2011. Seaboard noted that the operating income for the Commodity Trading and Milling segment increased $35.4 million and $31.5 million for the three- and ninemonth periods of 2011, respectively, compared to the same periods in 2010. These increases for the three- and nine-month periods primarily reﬂect the $50.2 million and $40.5 million ﬂuctuation of marking to market the derivative contracts. Excluding the effects of these contracts, operating income decreased $14.8 million and $9 million for the three- and nine-month periods, respectively. The decreases were primarily the result of net writedowns of $10.7 million and $14 million in the three- and nine- month periods of 2011, respectively, for certain grain inventories for customer contract performance issues.

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AMANDUS KAHL GmbH & Co. KG, Dieselstrasse 5-9, D-21465 Reinbek / Hamburg, Phone: +49 40 727 71 0, Fax: +49 40 727 71 100 info@amandus-kahl-group.de, www.akahl.de

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World Grain - December 2011

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