January 16, 2008

CHS profit hikes 121 percent in 07 first quarter

CHS Inc. reported that its net income more than doubled in the first quarter ended November 30, 2007, jumping 121 percent to US$300 million from US$136 million.

Company earnings during the most recent quarter included a US$91.7-million gain on the sale of CF Industries Holdings Inc. stock.

Revenues for the period also escalated by 74 percent to US$6.5 billion from $3.8 billion in the same period a year ago.

The remarkable sales increases were attributed to higher prices for grain and energy and strong crop nutrients sales.

The Ag Business segment, which consists of CHS agronomy, grain marketing and retail operations, gained operating earnings of US$118 million on total sales of US$3.8 billion, up sharply from US$38 million and $1.8 billion respectively, during the first quarter of fiscal 2007.

CHS stated that its grain marketing operations improved earnings by US$46.3 million during the three months ended November 30, compared with the same three-month period in fiscal 2007.

Profits were also significantly up the in CHS processing operations, which include oilseed processing, wheat milling, food production and renewable fuels operations. Operating earnings in the first quarter were US$4.6 million up from US$605,000, while sales rose by 57 percent to US$243 million.

CHS said earnings from oilseed processing operations increased $2.7 million during the first quarter behind improved margins in refining operations, while earnings from wheat milling joint ventures posted improved earnings of $6.5 million.