CHS Inc., a leading energy, grains and foods company, reported fiscal 2009 net income of US$381.4 million, down 52.5 percent from US$803 million in fiscal 2008.
Revenues for fiscal 2009 were US$25.7 billion, down 20 percent from US$32.2 billion for 2008, largely the result of lower values for the energy and grain commodities that make up the majority of CHS sales.
For the fourth quarter of fiscal 2009, CHS reported earnings of US$97.3 million on revenues of US$6.7 billion, compared with earnings of US$145.4 million and revenues of US$9.4 billion for the fourth quarter of fiscal 2008.
CHS president and CEO John Johnson considered it a good performance given an overall weak global economy and extreme volatility the company had experienced in fiscal 2009.
Many CHS business achieved record or near-record performance in 2009, said Johnson.
Earnings for 2009 were led by the company's Energy segment which includes its refined fuels, propane, lubricants and related support businesses. Strong refining margins and a growing retail presence contributed to refined fuels earnings, while geographic growth along with strong heating and crop drying demand contributed to record propane performance.
Performance varied widely in the CHS Ag Business segment consisting of crop nutrients, grain marketing and retail operations. A dramatic drop in crop nutrients prices combined with weather-driven lower demand resulted in significant losses due to reduced inventory values. Grain marketing and local retail operations both achieved strong performance due to continued global grain demand and successful use of market risk management tools.
CHS Processing businesses, including its own oilseed crushing refining operations, along with ownership in vegetable oil-based manufacturer/packager Ventura Foods, LLC, and flour miller Horizon Milling, LLC, set a new mark in fiscal 2009.
In addition to earnings from its own Processing businesses and joint ventures, CHS also recorded within this segment its US$74.3 million write down of the remainder of its investment in VeraSun, Corp., an ethanol manufacturer currently undergoing bankruptcy liquidation.
CHS earnings also reflected results from its Business Solutions operations, included under "Corporate and Other," which reported lower earnings for fiscal 2009 due to a soft market for insurance services and reduced activity in the company's hedging, risk management and financing businesses amid reduced market activity.
CHS Inc. is a diversified energy, grains and foods company owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders across the US. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services.
