St. Paul, Minnesota, April 9, 2008 - CHS Inc., a leading energy, grains and foods company, today reported record earnings for the first half of its 2008 fiscal year of $468.9 million.
Net income for the first half of fiscal 2008 (Sept. 1, 2007 - Feb. 29, 2008) compares with $220.1 million for the same period in fiscal 2007. Total revenues for the first two quarters of fiscal 2008 were $13.4 billion, also a record, and compared with $7.5 billion for the same period of 2007. The revenue increase was primarily attributed to record prices for the grain, refined fuels and crop nutrients products CHS markets.
Net income for the second quarter of the 2008 fiscal year (Dec. 1, 2007 - Feb. 29, 2008) was $168.0 million, compared with $83.7 million for the second quarter of fiscal 2007. Revenues for the quarter were $6.9 billion, up from $3.7 billion the previous year.
Earnings through the second quarter reflect record results for the company's Ag Business segment, including grain marketing, crop nutrients and retail operations, and were driven largely by strong global prices and demand. CHS also reported strong results for its Energy segment, although refined fuels earnings were down slightly due to lower refining margins. Earnings were ahead of fiscal 2007 within the company's Processing segment, consisting of its own oilseed processing, along with joint venture food manufacturing and flour milling operations and ownership in renewable fuels manufacturing. The company's insurance, risk management and financial services businesses also were on track with the previous year's performance.
CHS Inc. is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. CHS supplies energy, crop nutrients, grain, livestock 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(R) brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.
CHS Inc. Earnings
By segment
(in millions $)
Sept. 1- Feb. 29 Dec. 1 - Feb. 29
FY 2008 FY 2007 2ndQ 2008 2ndQ 2007
Energy $153.2 $160.7 $44.7 $49.2
Ag Business 324.7 30.8 120.0 2.7
Processing 48.2 42.8 28.0 32.2
Corporate & Other 9.0 8.9 4.6 5.5
Taxes (66.2) (23.1) (29.3) (5.9)
Net income $468.9 $220.1 $168.0 $83.7