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CHS reports year-end profit decline but remains upbeat for 2018
09 Nov 2017 --- US farmer-owned cooperative and a global energy, grains and foods company, CHS Inc. has reported a heavy drop in income in its year-end results, partly caused by a South American partner entering into bankruptcy-like proceedings. CHS experienced headwinds reporting a net income of US$127.9 million for the year ending Aug 31, 2017, compared to net income of US$424.2 million for the previous year. Consolidated revenues totaled US$31.9 billion for fiscal 2017, approximately a five percent increase over consolidated revenues of US$30.3 billion for fiscal 2016. “It's been a challenging year, but we're committed to meeting the long-term needs of our cooperative owners and customers. We will continue to take prudent actions to ensure the company is well positioned for future opportunities,” says CHS President and Chief Executive Officer Jay Debertin. For fiscal 2017, CHS experienced a loss before income taxes of US$54.8 million, down from income before income taxes of US$419.9 million in fiscal 2016. This reflects significant charges that relate to a Brazilian trading partner entering into bankruptcy-like proceedings under Brazilian law, intangible and fixed asset impairments and bad debt and loan loss reserve charges, of which a significant portion related to a single large producer borrower. “As fiscal 2018 unfolds, CHS is focusing on three key priorities: strengthen relationships with owners and customers, sharpen the focus on operational excellence, and restore financial flexibility,” Debertin adds. “I'm happy to report that we've seen progress on these priorities already. We are making significant headway towards managing credit risk consistently across the organization and are leveraging our ongoing asset review to drive decisions that will further strengthen our balance sheet.” Ag segment Grain marketing earnings decreased primarily due to charges associated with a trading partner in our Brazilian operations entering bankruptcy-like proceedings under Brazilian law. Country operations experienced a decrease in pretax income due to changes in reserves related to a single producer borrower and asset impairments, which were significantly offset by higher grain margins and volumes. A decrease in processing and food ingredients pretax income was primarily caused by long-lived asset impairment charges. Pretax income for crop nutrients and renewable fuels increased due to higher volumes and higher margins, respectively. Food Corporate and other Year over year income before taxes increased to US$43.4 million, compared to US$14.7 million during fiscal 2016. To contact our editorial team please email us at editorial@cnsmedia.com 
CHS
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COMPANY DETAILSCHS 5500 Cenex Drive, Inver Grove Heights Minnesota 55077 United States
Tel. 001-651-355-6000 ACTIVE CATEGORIESSoya and Soya Products CHS Inc. (www.chsinc.com) is North America’s leading farmer owned cooperative and 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, 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 products include refined vegetable oils, soy and wheat flours, textured soy protein, and specialty soy protein products. We also supply confectionary sunflower seeds, along with other small grains and processed nuts ingredients. Packaged foods for retail, foodservice and institutional markets are manufactured and distributed through Ventura Foods, LLC, a leading U.S.supplier of edible oil products and a 50/50 joint venture between CHS and Mitsui Co Ltd. Related ArticlesFood Ingredients News Food loss challenge: Rabobank’s start-up shortlist to help reduce food loss in Asia
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