ST. PAUL, Minn., July 7, 2016 /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 $425.8
million through nine months of its 2016 fiscal year.
CHS net income of $425.8 million
for the period from Sept.1, 2015 through May
31, 2016, reflected a 34 percent decline from net income of
$649.6 million through nine months of
fiscal 2015. The lower earnings were attributed to the continued
down economic cycles in the agricultural and energy sectors, which
have resulted in reduced commodity prices and lower margins
globally. Fiscal 2016 revenues through May
31, 2016, were $22.2 billion,
down 17 percent from $26.6 billion
for the first three quarters of fiscal 2015, and primarily
reflected lower selling prices for the energy, grain and fertilizer
products the company handles.
CHS net income for the third quarter of fiscal 2016
(March 1 through May 31, 2016), was 7
percent ahead of the same period of fiscal 2015. CHS reported net
income of $190.3 million for the
third quarter of fiscal 2016, compared with $178.1 million for the same period in fiscal
2015. Results for the third quarter of fiscal 2016 were attributed
to increased pre-tax earnings for the company's Energy segment and
its Corporate and Other category, as well as the new CHS Nitrogen
Production segment. Results also reflected a reversal of lower cost
or market charges taken earlier in fiscal 2016 within the Energy
segment when energy product prices were lower. Revenues for the
third quarter of fiscal 2016 were $7.8
billion, down 10 percent compared with $8.7 billion for the third quarter of fiscal
2015.
For the first three quarters of fiscal 2016, operating income
reflected lower pre-tax earnings in the CHS Energy and Ag segments.
These were partially offset by increased earnings in the Corporate
and Other category, as well as the addition of the company's new
Nitrogen Production segment.
CHS Energy segment earnings through the third quarter of fiscal
2016 declined year-over-year primarily due to lower refining
margins, along with decreased earnings for the company's lubricants
and transportation businesses. Propane earnings through nine months
of fiscal 2016 increased from the same period of fiscal 2015.
Year-over-year earnings also declined within the CHS Ag segment,
which includes the company's wholesale crop nutrients, renewable
fuels, Country Operations retail, animal nutrition and sunflower
processing; grain marketing, and processing and food ingredients
businesses. Lower earnings in this segment were largely attributed
to soft market conditions across the agricultural sectors CHS
serves. Lower grain margins resulted in decreased earnings within
grain marketing and Country Operations. Earnings for the company's
wholesale crop nutrients business also declined compared with the
same period of fiscal 2015 due to lower margins. CHS renewable
fuels marketing and production earnings decreased through nine
months of fiscal 2016 when compared with the same period of fiscal
2015, largely due to lower market prices for ethanol. CHS
processing and food ingredients earnings decreased primarily due to
a charge associated with disposal of the assets and a customer
receivable.
CHS generated income before taxes in its newly established
Nitrogen Production segment of $26.3
million, resulting from its February
2016 equity method investment of $2.8
billion in CF Industries Nitrogen, LLC.
CHS reports results for its business services operations and its
two food processing-related joint ventures under the Corporate and
Other category. Corporate and Other earnings for the first nine
months of fiscal 2016 increased over the previous year primarily
due to increased hedging and capital volumes and lower compensation
and benefit costs.
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, a Fortune 100 company,
supplies energy, crop nutrients, grain marketing services, animal
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.
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 Reform
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 place undue
reliance 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,
2015. 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
|
By
segment
|
(in millions
$)
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
May
31,
|
|
May
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Energy
|
$109.4
|
|
$83.3
|
|
$239.2
|
|
$374.6
|
Ag
|
24.2
|
|
61.7
|
|
62.4
|
|
262.0
|
Nitrogen
Production
|
25.0
|
|
--
|
|
26.3
|
|
--
|
Corporate and
Other
|
35.9
|
|
25.5
|
|
80.0
|
|
60.0
|
Income (loss) before
income taxes
|
194.5
|
|
170.5
|
|
407.9
|
|
696.6
|
Income tax (benefit)
expense
|
4.8
|
|
(7.3)
|
|
(17.8)
|
|
47.5
|
Net income
(loss)
|
189.7
|
|
177.8
|
|
425.7
|
|
649.1
|
Net income (loss)
attributable to non-controlling interests
|
(0.6)
|
|
(0.3)
|
|
(0.1)
|
|
(0.5)
|
Net income
attributable to CHS Inc.
|
$190.3
|
|
$178.1
|
|
$425.8
|
|
$649.6
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chs-reports-fiscal-2016-nine-month-earnings-of-4258-million-300295619.html
SOURCE CHS Inc.