ST. PAUL, Minn., July 10, 2015 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and
a global energy, grains and foods company, today reported earnings
of $649.6 million for the first three
quarters of its 2015 fiscal year.
The earnings attributable to CHS for the period (Sept. 1, 2014 – May 31,
2015) represented a decrease of 26 percent from the
$881.7 million reported for the first
three quarters of fiscal 2014. Revenues for first nine months of
fiscal 2015 were $26.6 billion, down
19 percent from $32.7 billion for the
same period a year ago, primarily due to lower average prices for
the refined energy products, grains and fertilizer that make up a
significant portion of CHS business.
Earnings for the third quarter of fiscal 2015 (March 1–
May 31, 2015) were $178.1 million, down 53 percent from $379.5 million for the same period of fiscal
2014. The third quarter of fiscal 2014 included a one-time gain of
$108.8 million attributed to the
establishment of the Ardent Mills flour milling joint venture in
May 2014. Fiscal 2015 third quarter
revenues of $8.7 billion declined 28
percent from the same three-month period a year ago.
For the first nine months of fiscal year 2015, Energy segment
earnings declined primarily due to significantly reduced refining
margins and scheduled maintenance at its McPherson, Kan., refinery, along with, to a
lesser extent, decreased propane earnings.
CHS Ag segment earnings through the third quarter also declined.
This decrease was attributed to lower earnings from logistics
within grain marketing compared with the first three quarters of
fiscal 2014, as well as lower grain and wholesale crop nutrients
volumes. In addition, through the third quarter of fiscal 2015, CHS
retail facilities experienced lower agronomy margins. Earnings for
CHS renewable fuels marketing and production operations declined
due to lower market prices which resulted in lower marketing
commissions; those lower earnings were partially offset by the 2014
acquisition of a Rochelle, Ill.,
ethanol plant.
CHS reports results for its business services operations and its
two food processing-related joint ventures under the Corporate and
Other category which reported lower earnings through the third
quarter of fiscal 2015 primarily due to the one-time gain in fiscal
2014 associated with the formation of the Ardent Mills milling
joint venture.
In addition to reporting fiscal 2015 third quarter results, CHS
announced today that the company will not issue non-qualified
equity to eligible cooperative member-owners as part of its
patronage distribution for fiscal 2015.
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 and other CHS Inc. publicly available documents
contain, and CHS officers and representatives may from time to time
make, "forward–looking statements" within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Report
Act of 1995. Forward–looking statements can be identified by words
such as "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Forward–looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
CHS current beliefs, expectations and assumptions regarding the
future of its businesses, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward–looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of CHS control. CHS actual results and financial
condition may differ materially from those indicated in the
forward–looking statements. Therefore, you should not rely on any
of these forward–looking statements. Important factors that could
cause CHS actual results and financial condition to differ
materially from those indicated in the forward–looking statements
are discussed or identified in CHS public filings made with the
U.S. Securities and Exchange Commission, including in the "Risk
Factors" discussion in Item 1A of CHS Annual Report on Form 10–K
for the fiscal year ended August 31,
2014. Any forward–looking statements made by CHS in this
document are based only on information currently available to CHS
and speak only as of the date on which the statement is made. CHS
undertakes no obligation to publicly update any forward–looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
CHS Inc.
Earnings
By
segment
(in millions
$)
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
May
31,
|
|
May
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Energy
|
$83.3
|
|
197.7
|
|
374.6
|
|
553.2
|
Ag
|
61.7
|
|
117.2
|
|
262.0
|
|
274.3
|
Corporate and
Other
|
25.5
|
|
124.7
|
|
60.0
|
|
172.1
|
Income before income
taxes
|
170.5
|
|
439.6
|
|
696.6
|
|
999.6
|
Income
taxes
|
(7.3)
|
|
59.7
|
|
47.5
|
|
116.1
|
Net
income
|
177.8
|
|
379.9
|
|
649.1
|
|
883.5
|
Net income
attributable to non-controlling interests
|
(0.3)
|
|
0.4
|
|
(0.5)
|
|
1.8
|
Net income
attributable to CHS Inc.
|
$178.1
|
|
379.5
|
|
649.6
|
|
881.7
|
|
|
|
|
|
|
|
|
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visit:http://www.prnewswire.com/news-releases/chs-reports-earnings-of-6496-million-through-fiscal-2015-third-quarter-300111572.html
SOURCE CHS Inc.