CHS Reports Solid 2015 Results, Demonstrates Commitment to Growth
07 Dec 2015 --- Leaders of CHS Inc., the leading US farmer-owned cooperative and a global energy, grains and foods company, reported solid performance in fiscal 2015, never wavering from the company's three-part commitment to deliver economic benefits, investment for tomorrow and maintain a strong financial foundation to help member cooperatives and producers grow.
"Today, we're unique. A cooperatively owned, global company with operations and employees in 25 countries. A cooperative with strategic assets and strategic partnerships that keep our U.S. producers and our customers in 70 countries in the market every day of the year," Carl Casale, CHS president and chief executive officer, told 2,500 owners, cooperative leaders and strategic partners attending its 2015 Annual Meeting in Minneapolis. "At the root of our cooperative structure is the recognition that together we can be more, achieve more and succeed more."
"That level of commitment – from our owners, by your board, management team and CHS employees – has been the engine driving the tremendous growth, success, and change your company has experienced," CHS Board Chairman David Bielenberg, an Oregon farmer, told the audience. "And it includes some of the boldest and most significant investments we've ever made – the result of commitment to vision, planning and action that begins long before we announce a decision."
In recapping company performance, Executive Vice President and Chief Financial Officer Tim Skidmore said CHS delivered respectable results in fiscal 2015 that include delivering competitive economic returns to its owners and investing significant growth capital to drive future returns for owners, all supported by the strongest balance sheet in company history.
For fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015), CHS reported net income of $781 million on revenues of $34.6 billion. The company also returned $533.8 million to its owners in fiscal 2015, based on 2014 results. CHS expects to distribute an estimated $519 million in fiscal 2016, consisting of cash patronage, equity redemptions and preferred stock dividends.
"If I had to summarize the past fiscal year in one word overall, I'd say 'solid'," said Skidmore. "That's especially true when you put it in the context of the softer environment we're facing across the markets we operate in globally."
In addition to company updates, the meeting included a full day of interactive exhibits, nearly 60 educational sessions and a keynote address from Mark Kelly, commander of Space Shuttle Endeavor's final voyage, who shared his commitment story during the opening session. Among those also attending the meeting were 170 farmers and ranchers from across the U.S. who took part in the CHS New Leaders Forum, a program that helps build next generation leaders for agriculture and rural America.
Recent CHS business highlights include:
• Announcing its planned $2.8 billion investment in CF Industries Nitrogen, LLC
• Completing the acquisition of the McPherson, Kan.–based refinery and related operations along with upgrades and expansions at that refinery and its Laurel, Mont., refinery
• Adding Pacific Rim grain export capacity at Kalama, Wash.
• Purchasing a second ethanol processing facility at Annawan, Ill.
• Acquiring a canola crushing plant in Hallock, Minn.
