CHS earnings down sharply in third quarter

CHS Inc.'s net income in the third quarter fell to US$64.6 million, down sharply from US$188.7 million in the third quarter of the previous fiscal year.

Revenue for the quarter has declined 34 percent to US$6.2 billion from US$9.3 billion in the year-ago period. Decreased sales were a result of lower values of many of the grain, refined fuels and crop nutrient products in CHS markets.

The company's Ag Business segment posted operating earnings of US$22.7 million, down sharply from US$149.7 million in the third quarter of fiscal 2008. Sales in the segment totalled US$4.4 billion, down 27 percent from more than US$6 billion a year ago.

Earnings within CHS Processing operations also fell during the quarter. CHS sustained a loss in the division of more than US$4 million, which compared with earnings of US$14.6 million in the same period a year ago. Sales totalled more than US$252 million, down from US$353.5 million.