Leucadia notes National Beef’s struggles with cattle supply in Q2 results
Leucadia National Corp. announced its operating results for the three month period ended June 30, 2014. Net income attributable to Leucadia National Corporation common shareholders for the three month periods ended June 30, 2014 and 2013 was $65,074,000 ($.17 per diluted common share) and $52,612,000 ($.14 per diluted common share), respectively.
Rich Handler, CEO of Leucadia, and Brian Friedman, President of Leucadia said, “In the first half of 2014, Leucadia made progress across many of our businesses, and we continue to review and invest in new opportunities. “
The company noted that with the U.S. cattle herd at 50 year lows and herd rebuilding in its early stages, margins for National Beef and the U.S. packing industry remain challenged, and the company recorded a first half pre-tax loss of $21.5 million.
“In response to insufficient cattle supply, National Beef closed its Brawley, California processing facility at the end of May, which caused part of the first half loss, but will contribute to improved results going forward,” the company said in a statement. “On positive notes, the expanded tannery is approaching full capacity and management continues to focus on additional value-added opportunities for National Beef consumer-ready beef facilities. As a result of these initiatives, we anticipate that National Beef will see improvements in profitability over the next several years.”
Source: Leucadia National Corp.