ST. PAUL, Minn., Nov. 23, 2015 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and
a global energy, grains and foods company, today announced earnings
for fiscal 2015 of $781 million.
CHS earnings for fiscal 2015 (Sept. 1,
2014 – Aug. 31, 2015) of
$781 million were down 28 percent
from more than $1.1 billion for
fiscal 2014, reflecting singular events as well as lower margins
across CHS energy and agriculture businesses. Revenues for the year
were $34.6 billion, down 19 percent
from $42.7 billion for fiscal 2014,
primarily due to lower values for the commodity energy and grains
products it handles.
"Our core businesses of agriculture and energy have entered a
global down cycle which affected both earnings and revenues for
fiscal 2015," said Carl Casale,
president and chief executive officer. "Nonetheless, we continue to
fulfill our commitment to our owners by making significant
investments in the future of our businesses; providing direct
economic returns and maintaining a strong financial foundation for
the future."
Year-over-year earnings for the CHS Energy segment declined
primarily due to significantly reduced refining margins resulting
from major maintenance turnarounds at its Laurel, Mont., and McPherson, Kan., refineries. Earnings for the
company's propane business also declined due to lower margins and
demand for both fall 2014 crop drying and winter 2014-15 heating
use. CHS lubricants business reported record earnings.
CHS Ag segment earnings for fiscal 2015 also declined overall,
driven primarily by a $116.5 million
impairment associated with the decision to cease development of a
nitrogen fertilizer plant at Spiritwood,
N.D. In addition, grain marketing earnings decreased
primarily as a result of robust logistical performance in fiscal
2014 which did not reoccur in fiscal 2015, as well as
growth-related expenses and foreign exchange losses which were
partially offset by increased margins. Within the company's Country
Operations local retail, animal nutrition and sunflower businesses,
earnings declined due to lower retail agronomy margins and growth
expenses, but were partially offset by higher grain volumes and
margins. CHS wholesale crop nutrients earnings increased in fiscal
2015 compared to fiscal 2014 due to increased margins partially
offset by decreased volumes.
CHS renewable fuels marketing and production operations earnings
also declined, primarily due to lower ethanol market prices and
corresponding lower marketing commissions; this decrease was
partially offset by additional production earnings from the
company's two Illinois ethanol
plants. CHS Processing and Food Ingredients fiscal 2015 earnings
increased when compared with fiscal 2014; fiscal 2014 earnings
included an impairment related to its CHS Israel assets.
CHS reports results for its Business Solutions operations and
two food processing-related joint ventures under the Corporate and
Other heading. Overall earnings for fiscal 2015 declined when
compared with fiscal 2014; fiscal 2014 included a gain of
$109.2 million associated with the
formation of the Ardent Mills milling joint venture. Combined
earnings for CHS Insurance, CHS Hedging and CHS Capital increased
slightly in fiscal 2015.
In fiscal 2015, based on fiscal 2014 earnings, CHS returned
$533.8 million to its owners in cash
patronage, equity redemptions, preferred stock and dividends on
preferred stock to its owners.
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,
2015. 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 12
Months
Ended
|
|
|
Aug.
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Energy
|
|
$538.1
|
|
$728.4
|
Ag
|
|
149.6
|
|
213.4
|
Corporate and
Other
|
|
80.4
|
|
189.5
|
Income before income
taxes
|
|
768.1
|
|
1,131.3
|
Income tax
benefit (expense)
|
|
12.2
|
|
(48.3)
|
Net
income
|
|
780.3
|
|
1,083.0
|
Net (income)
loss attributable to non-controlling interests
|
|
0.7
|
|
(1.6)
|
Net income
attributable to CHS Inc.
|
|
$781.0
|
|
$1,081.4
|
|
|
|
|
|
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SOURCE CHS Inc.