ST. PAUL, Minn., April 9 /PRNewswire-FirstCall/ -- CHS Inc., a leading energy, grain and foods company, today reported record net income of $218.6 million for the first six months of its 2007 fiscal year.
Net income through the second quarter (Sept. 1, 2006 - Feb. 28, 2007) increased 12 percent from $194.4 million the previous year. Revenues for the period were $7.5 billion, up from $6.6 billion a year ago.
For the second quarter (Dec. 1, 2006 - Feb. 28, 2007), the producer-owned cooperative reported earnings of $82.3 million compared with $40.1 million for the same period a year ago. Net income was a record for the period, as were revenues for the quarter of $3.7 billion, up from $3.2 billion for second quarter 2006.
The year-to-date results reflect continued strong performance by all CHS business operations. Energy earnings decreased from a year ago, reflecting lower refining margins. Earnings increased in the company's Ag Business segment, consisting of its agronomy, grain marketing and retail operations. Earnings were also up significantly in CHS Processing operations which include its oilseed processing, wheat milling, food production and renewable fuels operations.
During the second quarter, CHS recorded a gain of $11.4 million based on the value of its ownership in US BioEnergy, a renewable fuels manufacturer, after it became a publicly traded company in December. CHS owns about 21 percent of US BioEnergy.
CHS continues its distribution of up to $258 million in cash to its member-owners based on record fiscal 2006 earnings of $490.3 million. The total distribution consists of cash patronage, equity redemptions, preferred stock and dividends on preferred stock.
CHS Inc. (http://www.chsinc.com/) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives. A Fortune 500 company, CHS is owned by farmers, ranchers and cooperatives from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas, along with thousands of preferred stockholders. CHS provides products and services ranging from grain marketing to food processing to meet the needs of customers around the world. It also operates petroleum refineries/pipelines and, through a broad range of working partnerships, markets and distributes Cenex(R) brand energy products and renewable fuels, along with agronomic inputs and livestock feed to rural America. CHS is listed on the NASDAQ at CHSCP.
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, 2006, which can be found on the Securities and Exchange Commission web site (http://www.sec.gov/) or on the CHS web site http://www.chsinc.com/.
CHS Inc. Earnings
By segment
(in millions $)
Sept. 1 - Feb. 28 Dec. 1 - Feb. 28
(Six months) (2nd Quarter)
2007 2006 2007 2006
Energy $158.4 $180.8 $47.0 $34.8
Ag Business 30.8 17.5 2.7 0.8
Processing 42.8 17.2 32.2 7.4
Corporate & Other 8.8 3.5 5.5 1.5
Taxes (22.2) (24.7) (5.1) (4.3)
Income from $218.6 $194.3 82.3 40.2
continuing operations
Income (loss) on
discontinued operations,
net of taxes (0.1) (0.1)
Net income $218.6 $194.4 $82.3 $40.1
For further information,
Contact: Lani Jordan
(651) 355-4946
