ST. PAUL, Minn., April 7 /PRNewswire-FirstCall/ -- CHS Inc. , a leading energy and grain-based foods company, today reported net income from company operations of $202.6 million through the second quarter of its 2010 fiscal year.
For the first six months of fiscal 2010 (Sept. 1, 2009 - Feb. 28, 2010), the $202.6 million in net income attributable to CHS operations compares with $219.5 million for the same period of fiscal 2009. Revenues were $12.1 billion, down slightly from $12.9 billion through the second quarter of fiscal 2009, reflecting lower values in fiscal 2010 for the grain and crop nutrient products the company handles.
Earnings attributable to CHS operations for the second quarter of fiscal 2010 (Dec. 1, 2009 - Feb. 28, 2010) were $82.7 million, up slightly from $82.3 million for the same quarter in fiscal 2009. Revenues for the second quarter of fiscal 2010 were $5.9 billion compared with $5.2 billion the previous year.
Earnings for the first six months of fiscal 2010 reflected significantly lower refining margins within the Energy segment, while CHS propane, lubricants and renewable fuels marketing businesses reported higher earnings compared with the first half of fiscal 2009.
Increased product margins and increased demand for both grain and crop nutrients contributed to significantly improved earnings within the company's Ag Business segment through the second quarter of fiscal 2010. Those factors also contributed to year-to-date performance by CHS local retail operations ahead of 2009 levels.
The company's year-to-date 2010 Processing segment earnings increased over the same period a year ago, driven by both strong performance by its wholly owned oilseed processing operations and improved results for its portions of the Ventura Foods, LLC, vegetable oil-based food joint venture and Horizon Milling, LLC, wheat milling joint ventures.
CHS financing, insurance services and hedging businesses, recorded under Corporate and Other, reported slightly lower earnings through the second quarter of fiscal 2010. This is attributed to continued low interest rates which affect the CHS financing business, offset by stronger earnings in the company's hedging subsidiary.
CHS Inc. (http://www.chsinc.com/) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, across the United States. CHS supplies energy, crop nutrients, grain, livestock 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. 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, 2009, 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 $) Three months Six months ended ended ------------ ---------- Feb. Feb. 28, Feb. 28, 28, Feb. 28, 2010 2009 2010 2009 Energy $16.4 $93.6 $30.6 $300.5 Ag Business 70.1 13.9 161.8 33.6 Processing 6.2 9.2 37.0 (43.5) Corporate and Other 0.5 (1.1) 1.8 3.3 Taxes (7.0) (14.0) (22.5) (32.9) Net Income $86.2 $101.6 $208.7 $261.0 ----- ------ ------ ------ Net income attributable (3.5) (19.3) (6.1) (41.5) to non-controlling interests ---- ----- ---- ----- Net income attributable to $82.7 $82.3 $202.6 $219.5 CHS Inc. ===== ===== ====== ======
CHS Inc.
CONTACT: Lani Jordan of CHS Inc., +1-651-355-4946,
lani.jordan@chsinc.com
Web Site: http://www.chsinc.com/
