CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, has announced company net income of $471.5 million for the first six months of its 2015 fiscal year.
CHS net income of $471.5 million for the period Sept. 1, 2014 through Feb. 28, 2015, represented a 6% decrease from $502.3 million for the same period of fiscal 2014, primarily attributed to lower earnings within the company’s energy businesses, which were partially offset by improved performance by the company’s Ag segment. Revenues of $17.9 billion for the first half of fiscal 2015 were down 14% compared with $20.7 billion through the second quarter of fiscal 2014, largely due to lower average selling prices for the commodity energy, grain, fertilizer and processed grains the company handles.
For the second quarter of fiscal 2015 (Dec. 1, 2014 – Feb. 28, 2015), CHS reported net income of $92.8 million compared with $260.1 million for the same quarter of fiscal 2014. Revenues for the quarter of $8.4 billion declined from $9.7 billion the same period a year ago.
Earnings within the Energy segment declined for the six-month period, primarily due to significantly lower petroleum refining margins during the second quarter, as well as lower propane earnings.
The company’s Ag segment – which includes its grain marketing and fertilizer businesses, renewable fuels, local retail operations, and soybean processing and food ingredients – reported increased earnings through the second quarter. Within this segment, wholesale fertilizer margins increased while local retail operations earnings improved due to higher grain volumes and margins. CHS processing business reported increased income. Renewable fuels earnings were flat, while grain marketing earnings declined, primarily due to decreased logistical performance which was partially offset by improved export margins.
CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category which experienced lower profitability through the second quarter of fiscal 2015, primarily due to lower earnings from company finance, risk management and insurance businesses, its equity investments in wheat milling and vegetable-oil foods joint ventures.
