April 4, 2014


CHS earns US$502.3 million in first half of fiscal 2014  




CHS Inc., a Fortune 100 energy, grain and food company and the leading farmer-owned cooperative in the US, reported earnings of US$502.3 million through the second quarter of its 2014 fiscal year.


Earnings attributed to CHS operations for the first six months of fiscal 2014 (September 1, 2013 to February 28, 2014) declined 19% from the US$618.8 million reported for the first half of fiscal 2013. Revenues for the six-month period of fiscal 2014 were US$20.7 billion, compared with US$21.6 billion for the same period of fiscal 2013, reflecting a 4% decrease, primarily due to a decline in commodity prices for refined fuels and many of the grain, crop nutrients and processed oilseed products the company handles.


For the second quarter (December 1, 2013 to February 28, 2014), CHS posted earnings of US$260.1 million, compared with US$275.1 million reported for the same period of fiscal 2013. Revenues for the quarter were US$9.7 billion, compared with US$9.9 billion for the second quarter of fiscal 2013.


Six-month earnings were lower for the agriculture segment primarily due to decreased margins in CHS wholesale crop nutrients business, as well as expenses associated with the proposed fertiliser plant at Spiritwood, North Dakota. CHS grain marketing and locally controlled country operations retail businesses reported improved earnings for the six-month period due to strong logistical performance and improved margins. CHS processing and food ingredients operations recorded lower earnings overall, primarily due to lower soybean crushing margins.