CHS Reports Earnings Through Fiscal 2014 Third Quarter of $881.7 Million
10 Jul 2014 --- CHS Inc., the nation's leading farmer-owned cooperative and a global energy, grains and foods company, reported earnings of $881.7 million through the third quarter of its 2014 fiscal year.
The earnings attributable to CHS of $881.7 million for the period (Sept. 1, 2013 – May 31, 2014) represent an increase of one percent from the $869.6 million reported for the first three quarters of fiscal 2013. Revenues for nine months were $32.7 billion, down 3 percent from $33.5 billion for the same period a year ago, primarily due to lower average grain prices.
Earnings for the third quarter (March 1 – May 31, 2014) were $379.5 million, up 51 percent from $250.8 million for the same period in fiscal 2013. Earnings for the quarter reflected a one-time gain attributed to the establishment of a new flour milling joint venture, as well as stronger performance by the company's retail agronomy, wholesale crop nutrients and grain marketing businesses. At almost $12 billion, revenues for the quarter were comparable to the same three-month period of fiscal 2013.
Year-to-date, Energy segment earnings declined due to lower margins in refining which were partially offset by strong performance for CHS propane, renewable fuels marketing lubricants and transportation operations. Earnings for the CHS Ag segment increased through the third quarter as a result of strong logistical performance within grain marketing, higher agronomy margins and service income generated by the company's Country Operations retail locations, and improved wholesale crop nutrients performance.
CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category which recorded improved profitability through the third quarter of fiscal 2014. Earnings increased significantly from the previous nine-month period due to a one-time gain of $108.8 million associated with the contribution of its Horizon Milling assets to the newly formed Ardent Mills joint venture and overall strong business performance.
