CHS Posts Third Quarter Earnings Of $899.7 Million
Results are a 19% increase over the $754.8 million CHS recorded through the third quarter of fiscal year 2011.
July 13, 2012
CHS Inc., the No. 6 ranked retailer on our CropLife 100 list and the nation's leading producer-owned cooperative, today reported earnings of $899.7 million through the third quarter of its 2012 fiscal year.
Earnings attributed to CHS operations for nine months of fiscal year 2012 (Sept. 1, 2011 – May 31, 2012) increased 19% over the $754.8 million recorded through the third quarter of fiscal 2011. Revenues for the nine-month period of fiscal 2012 were $29.6 billion, compared with $26.3 billion for fiscal 2011, reflecting continued higher values for the commodity energy and crop nutrients products that comprise much of CHS business.
For the third quarter (March 1 – May 31), CHS posted income of $405.1 million, compared with $358.5 million for the same period in fiscal 2011, an increase of 13%. Revenues for the quarter were $11.0 billion, compared with $10.5 billion for the third quarter of fiscal 2011.
Earnings for the third quarter reflected strong performance across its Energy segment which includes refineries at Laurel, MT, and McPherson, KS. Year over year, nine-month earnings declined within the company's Ag operations – which consist of crop nutrients, grain marketing, oilseed processing and its Country Operations locally controlled retail service centers. Heavy spring fieldwork demand contributed to strong performance for crop nutrients and local retail operations, with Country Operations achieving record third quarter earnings. Lower grain marketing earnings were attributed to reduced U.S. export volumes and lower margins. While the company's oilseed processing business reported sound manufacturing margins, earnings decreased due to increased costs related to recent acquisitions.
CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category. Lower earnings for CHS financing businesses, as well as decreased earnings from the company's two food-related joint ventures, contributed to reduced overall results in this category year-to-date.
Source: PR Newswire