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CHS Inc. Reports 3Q Net Income of $64.6 Million, Down From $188.7 Million in 3Q 2008; Nine-Month Net Income of $284.1 Million

Date Posted: July 9, 2009


St. Paul, MN—CHS Inc., a leading energy, grains and foods company, reported July 9 earnings of $284.1 million through the third quarter of fiscal 2009.

Net income for the nine-month period (Sept. 1, 2008 - May 31, 2009) compares with earnings of $657.6 million through the third quarter of fiscal 2008.

Full CHS Report

Revenues through May 21, 2009, were $19.1 billion, down 16 percent from $22.8 billion for the previous year.

The revenue decline was attributed to lower prices for the energy, grain and crop nutrients products the company handles which reached record values during fiscal 2008.

For the third quarter (March 1 - May 31, 2009), CHS reported net income of $64.6 million compared with $188.7 million for the third quarter of fiscal 2008.

Revenues for the quarter were $6.2 billion compared with $9.3 billion in fiscal 2008.

Earnings for the period were led by the company's Energy segment, with strong performance from its refined fuels and propane businesses.

Within the Ag Business segment earnings were primarily impacted by crop nutrients inventory values which fell dramatically in 2009 following record prices in 2008.

In addition, wet spring planting weather in some market areas reduced product demand.

During fiscal 2008, CHS recorded a gain of $91.7 million on the company's sale of stock in CF Industries, a crop nutrients manufacturer.

CHS Processing segment results reflected reduced oilseed crushing margins, offset by strong earnings from both the company's ownership of Ventura Foods, LLC, a vegetable oil-based food processor and manufacturer, and Horizon Milling, LLC, a flour milling joint venture.

During the third quarter, CHS wrote off the remaining $3.6 million of its ownership in ethanol producer VeraSun Corp., bringing the loss recorded on this investment in fiscal 2009 to $74.3 million.

This was recorded within the Processing segment.

The weak economy also contributed to lower earnings for the company's insurance, risk management and financial services businesses, recorded under Corporate and Other.

For more information, call 651-355-4946.

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