ST. PAUL, Minn., April 4, 2018 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), the nation's leading
farmer-owned cooperative and a global energy, grains and foods
company, today reported net income of $346.7
million for the first half of its 2018 fiscal year
(six-month period ended Feb. 28,
2018), compared to net income of $223.7 million for the same time period a year
ago.
Consolidated revenues for the first half of fiscal 2018 were
$14.9 billion, down from $15.4 billion for the first half of fiscal 2017.
Pretax income was $185.0 million and
$249.1 million for the first half of
fiscal 2018 and 2017, respectively.
"CHS made meaningful progress in the first half of fiscal year
2018 as we continue to position CHS for higher performance," said
CHS President and CEO Jay Debertin.
"The global environment for our businesses serving agriculture
remains challenged and we continue to drive towards our priorities
of better efficiency, strengthening relationships, and a more
focused business portfolio. We have more work to do and we
are seeing improvement that will make us a stronger company."
For the second quarter of fiscal 2018 (Dec. 1, 2017 through Feb.
28, 2018), CHS reported net income of $166.7 million compared with earnings of
$14.6 million for the same period in
fiscal 2017. Revenues for the second quarter of fiscal 2018 were
$6.9 billion, down from $7.3 billion for the second quarter of fiscal
2017.
Results for the quarter were attributed to:
- Increased margins at the Company's refineries.
- Decreased volumes and margins within the Ag segment.
- A significant tax benefit recorded during the quarter related
to the Tax Cuts and Jobs Act of 2017.
For the first half of fiscal 2018, reporting segment results
include:
Energy
- Energy generated pretax income of $122.1
million during the first half compared to $86.6 million during the same period last
year.
- The $35.5 million increase
reflects improved market conditions in the company's refined fuels
business, primarily driven by wider manufacturing margins in our
refining operation.
Ag
- The Ag segment, which includes domestic and global grain
marketing and crop nutrients businesses, renewable fuels, local
retail operations and processing and food ingredients, generated
pretax income of $43.6 million for
the six months ending Feb. 28, 2018.
That compares to $99.9 million for
the same period the previous fiscal year.
- The $56.3 million decrease was
primarily the result of a decline in grain and oilseed volumes in
the grain marketing and country operations businesses, and lower
prices across the majority of the Ag sub-segments.
Nitrogen Production
- This segment is comprised of the Company's investment in CF
Industries Nitrogen, LLC (CF Nitrogen) and generated pretax income
of $10.2 million during the first
half of fiscal 2018 compared to $32.4
million during the same time in fiscal 2017.
- The $22.3 million decrease in
earnings was primarily due to a gain in fiscal 2017 of $29.1 million associated with an embedded
derivative asset that did not reoccur in fiscal 2018. This was
partially offset by improved prices on urea, produced by CF
Nitrogen.
Corporate and Other
- This category is primarily comprised of the company's wheat
milling joint venture (Ardent Mills), its investment in Ventura
Foods, LLC (Ventura Foods) and its financing, hedging and insurance
operations. Corporate and Other generated pretax income of
$9.1 million in the first half of
2018 compared to $30.2 million for
the same period of fiscal 2017.
- The $21.1 million decrease was
due to reduced interest revenue from the company's financing
business resulting from the sale of loans receivable and lower
earnings from our investment in Ventura Foods.
CHS Inc. (www.chsinc.com) is a leading 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 supplies energy, crop
nutrients, grain marketing services, animal feed, food and food
ingredients, along with 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.
This document and other CHS Inc. publicly available documents
contain, and CHS officers and representatives may from time to time
make, "forward–looking statements" within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Report
Act of 1995. Forward–looking statements can be identified by words
such as "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Forward–looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
CHS current beliefs, expectations and assumptions regarding the
future of its businesses, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward–looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of CHS control. CHS actual results and financial
condition may differ materially from those indicated in the
forward–looking statements. Therefore, you should not rely on any
of these forward–looking statements. Important factors that could
cause CHS actual results and financial condition to differ
materially from those indicated in the forward–looking statements
are discussed or identified in CHS public filings made with the
U.S. Securities and Exchange Commission, including in the "Risk
Factors" discussion in Item 1A of CHS Annual Report on Form 10–K
for the fiscal year ended August 31,
2017. Any forward–looking statements made by CHS in this
document are based only on information currently available to CHS
and speak only as of the date on which the statement is made. CHS
undertakes no obligation to publicly update any forward–looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
CHS Inc.
Earnings
|
millions
$
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
Feb.
28,
|
|
Feb.
28,
|
|
|
|
2018
(fiscal
year)
|
|
2017
(fiscal
year)
|
|
2018
(fiscal
year)
|
|
2017
(fiscal
year)
|
|
|
|
|
|
|
Energy
|
|
$9.0
|
|
$16.6
|
|
$122.1
|
|
$86.6
|
|
Ag
|
|
(30.9)
|
|
(9.3)
|
|
43.6
|
|
99.9
|
|
Nitrogen
Production
|
|
4.5
|
|
5.5
|
|
10.2
|
|
32.4
|
|
Corporate and
Other
|
|
2.8
|
|
10.8
|
|
9.1
|
30.2
|
Income before
income taxes
|
|
(14.6)
|
|
23.6
|
|
185.0
|
|
249.1
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
(181.2)
|
|
8.6
|
|
(161.2)
|
|
25.2
|
|
Net
income
|
|
166.6
|
|
15.0
|
|
346.2
|
|
223.9
|
|
Net income
attributable to non-controlling interests
|
|
(0.1)
|
|
0.4
|
|
(0.5)
|
|
0.2
|
|
Net income
attributable to CHS Inc.
|
|
$166.7
|
|
$14.6
|
|
$346.7
|
|
$223.7
|
|
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content:http://www.prnewswire.com/news-releases/chs-reports-a-net-income-of-3467-million-for-the-first-half-of-fiscal-2018-300624582.html
SOURCE CHS Inc.