ST. PAUL, Minn., April 8, 2015 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and
a global energy, grains and foods company, today 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
percent 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
percent 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.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned
by farmers, ranchers and cooperatives across the United States. Diversified in energy,
grains and foods, CHS is committed to helping its customers,
farmer-owners and other stakeholders grow their businesses through
its domestic and global operations. CHS, a Fortune 100 company,
supplies energy, crop nutrients, grain marketing services, animal
feed, food and food ingredients, along with business solutions
including insurance, financial and risk management services. The
company operates petroleum refineries/pipelines and manufactures,
markets and distributes Cenex® brand refined fuels,
lubricants, propane and renewable energy products.
This document contains forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995
that are based on management's current expectations and
assumptions. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from the potential results discussed in the
forward-looking statements. The company undertakes no obligations
to publicly revise any forward-looking statements to reflect future
events or circumstances. For a discussion of additional factors
that may materially affect management's estimates and predictions,
please view the CHS Inc. annual report filed on Form 10-K for the
year ended Aug. 31, 2014, which can
be found on the Securities and Exchange Commission web site
(www.sec.gov) or on the CHS web site www.chsinc.com.
|
CHS Inc.
Earnings
By
segment
(in millions
$)
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
February
28,
|
|
February
28,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Energy
|
$14.1
|
|
229.1
|
|
291.3
|
|
355.5
|
Ag
|
58.0
|
|
38.0
|
|
200.4
|
|
157.2
|
Corporate and
Other
|
18.4
|
|
23.2
|
|
34.4
|
|
47.3
|
Income before income
taxes
|
90.5
|
|
290.3
|
|
526.1
|
|
560.0
|
Income
taxes
|
(2.4)
|
|
29.7
|
|
54.9
|
|
56.3
|
Net income
|
92.9
|
|
260.6
|
|
471.2
|
|
503.7
|
Net income
attributable to non-controlling interests
|
0.1
|
|
0.5
|
|
(0.3)
|
|
1.4
|
Net income
attributable to CHS Inc.
|
$92.8
|
|
260.1
|
|
471.5
|
|
502.3
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cooperative-chs-reports-net-income-of-4715-million-for-first-six-months-of-fiscal-2015-300063073.html
SOURCE CHS Inc.