ST. PAUL, Minn., Jan. 10, 2018 /PRNewswire/ -- CHS Inc. (NASDAQ:
CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), the nation's leading
farmer-owned cooperative and a global energy, grains and foods
company, today reported net income of $180.1
million for the first quarter of its 2018 fiscal year
(three-month period ended Nov. 30,
2017), compared to net income of $209.2 million for the same period a year
ago.
Consolidated revenues for the first quarter of fiscal 2018 were
$8.0 billion, the same as fiscal
2017. Pretax income was $199.6
million and $225.6 million for
the first quarter of fiscal 2018 and 2017, respectively.
"Despite challenging market conditions, CHS experienced a solid
first quarter thanks to our continued focus on three key
priorities: strengthening relationships, sharpening operational
excellence and restoring financial flexibility," said CHS President
and Chief Executive Officer Jay
Debertin. "In the first quarter, we recorded solid earnings
from our businesses and reduced long-term debt. These actions are
helping to strengthen and grow CHS."
For the first quarter of fiscal 2018, reporting segment results
were:
Energy
- Energy generated pretax income of $113.1
million during the first quarter, compared to $70.0 million during the same period last
year.
- The $43.1 million increase was
primarily driven by improved margins within refined fuels.
Ag
- The Ag segment, which includes domestic and global grain
marketing and crop nutrients businesses, renewable fuels, local
retail operations, and processing and food ingredients, generated
pretax income of $74.5 million for
the three months ended Nov. 30, 2017,
compared to $109.2 million for the
same period the previous fiscal year.
- The $34.7 million decrease was
primarily the result of lower margins in grain marketing,
processing and food ingredients and renewable fuels. Lower volumes
in grain marketing and processing and food ingredients also
contributed to the decrease.
- The decrease was partially offset by an increase in earnings in
the crop nutrients and country operations businesses.
Nitrogen Production
- This segment is comprised of the company's investment in CF
Industries Nitrogen, LLC (CF Nitrogen), and generated pretax income
of $5.7 million during the first
quarter of fiscal 2018, compared to $27.0
million during the same time in fiscal 2017.
- The decrease in earnings was primarily due to a gain of
$29.1 million from an embedded
derivative associated with CF Nitrogen that was recognized in
fiscal 2017. There was no comparable gain in the current fiscal
year.
- This decrease was partially offset by higher urea and urea
ammonium nitrate prices.
Food
- This segment is comprised of the company's investment in
Ventura Foods, LLC (Ventura Foods), and generated pretax income of
$1.0 million in the first quarter of
fiscal 2018, compared to $10.6
million during the same period of fiscal 2017.
- The decrease in earnings was due to lower margins at Ventura
Foods.
Corporate and Other
- This category is primarily comprised of the company's wheat
milling joint venture and its financing, hedging and insurance
operations, and generated pretax income of $5.3 million in the first quarter of 2018,
compared to $8.7 for the same period
of fiscal 2017.
- The decrease in earnings was due to lower earnings from the
wheat milling joint venture and less interest revenue due to
amending a receivables securitization agreement in late FY17,
pursuant to which we no longer receive interest income from those
receivables.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned
by farmers, ranchers and cooperatives across the United States. Diversified in energy,
grains and foods, CHS is committed to helping its customers,
farmer-owners and other stakeholders grow their businesses through
its domestic and global operations. CHS supplies energy, crop
nutrients, grain marketing services, animal feed, food and food
ingredients, along with insurance, financial and risk management
services. The company operates petroleum refineries/pipelines and
manufactures, markets and distributes Cenex® brand refined fuels,
lubricants, propane and renewable energy products.
This document and other CHS Inc. publicly available documents
contain, and CHS officers and representatives may from time to time
make, "forward–looking statements" within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Report
Act of 1995. Forward–looking statements can be identified by words
such as "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Forward–looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
CHS current beliefs, expectations and assumptions regarding the
future of its businesses, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward–looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of CHS control. CHS actual results and financial
condition may differ materially from those indicated in the
forward–looking statements. Therefore, you should not rely on any
of these forward–looking statements. Important factors that could
cause CHS actual results and financial condition to differ
materially from those indicated in the forward–looking statements
are discussed or identified in CHS public filings made with the
U.S. Securities and Exchange Commission, including in the "Risk
Factors" discussion in Item 1A of CHS Annual Report on Form 10–K
for the fiscal year ended August 31,
2017. Any forward–looking statements made by CHS in this
document are based only on information currently available to CHS
and speak only as of the date on which the statement is made. CHS
undertakes no obligation to publicly update any forward–looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
CHS Inc.
Earnings
|
millions
$
|
|
|
For the Three
Months Ended
|
|
Nov.
30,
|
|
2018
(fiscal
year)
|
|
2017
(fiscal
year)
|
|
|
Energy
|
$113.1
|
|
$70.0
|
Ag
|
74.5
|
|
109.2
|
Nitrogen
Production
Foods
Corporate and
Other
|
5.7
1.0
5.3
|
|
27.0
|
10.6
|
8.8
|
Income before
income taxes
|
199.6
|
|
225.6
|
Income
taxes
|
(19.9)
|
|
(16.6)
|
Net
income
|
179.7
|
|
209.0
|
Net income
attributable to non-controlling interests
|
0.4
|
|
0.2
|
Net income
attributable to CHS Inc.
|
$180.1
|
|
$209.2
|
|
|
|
|
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SOURCE CHS Inc.