Grainnet

St. Paul, MN—CHS Inc., a leading energy, grains and foods company, reported Nov. 10 fiscal 2009 net income of $381.4 million, the fourth-highest in the farmer-owned cooperative's nearly 80-year history.

Net income for fiscal 2009 (Sept. 1, 2008 - Aug. 31, 2009) compared with $803 million for fiscal 2008.

Revenues for fiscal 2009 were $25.7 billion, down 20 percent from $32.2 billion for 2008, largely the result of lower values for the energy and grain commodities that make up the majority of CHS sales.

Full CHS Report

For the fourth quarter of fiscal 2009 (June 1 - Aug. 31, 2009) CHS reported earnings of $97.3 million on revenues of $6.7 billion.

That compared with earnings of $145.4 million and revenues of $9.4 billion for the fourth quarter of fiscal 2008.

"Given the overall weak global economy and the extreme volatility many of our businesses experienced during fiscal 2009, we are very pleased with these results," said John Johnson, CHS president and chief executive officer.

"Many of our businesses achieved record or near-record performance in 2009."

As a producer-owned cooperative, CHS returns a portion of its earnings to eligible owners. In 2009, based on fiscal 2008 performance, the company issued a record $347.2 million in cash patronage, equity redemptions, preferred stock and dividends.

Based on 2009 earnings, CHS is expected to return about $220 million to owners during fiscal 2010, the fourth-highest return in company history.

Earnings for 2009 were led by the company's Energy segment which includes its refined fuels, propane, lubricants and related support businesses.

Strong refining margins and a growing retail presence contributed to refined fuels earnings, while geographic growth along with strong heating and crop drying demand contributed to record propane performance.

Performance varied widely in the CHS Ag Business segment consisting of crop nutrients, grain marketing and retail operations.

A dramatic drop in crop nutrients prices combined with weather-driven lower demand resulted in significant losses due to reduced inventory values.

Grain marketing and local retail operations both achieved strong performance due to continued global grain demand and successful use of market risk management tools.

For more information, call 651-355-4946.

See Related Websites/Articles:

• CHS Inc.
• Full CHS Report

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