St. Paul, MN - Nov. 6, 2019 - CHS Inc. (NASDAQ: CHSCP), the nation's leading agribusiness cooperative, today reported net income of $829.9 million for the fiscal year ended Aug. 31, 2019. The results reflect an increase of $54.0 million -- or 7 percent -- compared to fiscal year 2018.
Key financial drivers for fiscal year 2019 include:
"We are pleased with our results on behalf of our owners in fiscal year 2019. We focused on our priorities, built on our strategies, continued to improve our control environment and leveraged the strength of our supply chain to deliver value to the farmers and co-ops that own us," said Jay Debertin, president and CEO of CHS Inc.
"Improving customer experience and innovations led to better results including increased diesel production at our refinery in McPherson, Kansas.
"Our acquisition of the remaining 75 percent interest in West Central Distribution that we previously didn't own expanded our distribution channels and grew market access in agronomy.
"When flooding made major riverways impassable, we leveraged our supply chain to reposition fertilizer to ensure our cooperatives and customers had the crop nutrients they needed for spring planting," he said.
"We identified new markets for our owners' grain to help them navigate the difficult trade situation.
"And we began construction on a fertilizer storage facility in North Dakota and a grain shuttle loader in Minnesota.
"In each of these, the driving force was to be our customers' first choice.
"We know the headwinds agriculture faced in fiscal year 2019 have carried over to fiscal year 2020, and CHS feels those same challenges.
"No one, however, feels them more and understands the impact more than the farmers and cooperatives that own us," Debertin continued.
"We remain focused on delivering value to our owners and creating connections to empower agriculture.
"And we're committed to continuing to raise our owners' voices to policymakers and elected officials and identifying opportunities to continue to build our business, leveraging our supply chain and helping our owners navigate fluctuating markets."
Fiscal Year 2019 Business Segment Results
The fiscal year 2019 segment results are:
Energy Pretax earnings of $618.2 million represent a $166.1 million increase versus the prior year and reflect:
Ag Pretax earnings of $43.0 million represent a $31.3 million decrease versus prior year and reflect:
Nitrogen Production Pretax earnings of $72.9 million represent a $34.1 million increase versus prior year and reflect:
Corporate and Other Pretax earnings of $81.5 million represent a $24.5 million decrease versus prior year and reflect:
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