CHS Inc. 8% Cumulative Redeemable Preferred Stock (CHSCP) News

ST. PAUL, Minn., April 9 /PRNewswire/ -- CHS Inc. (Nasdaq: CHSCP), a leading energy, grains and foods company, today reported earnings of $219.5 million for the first half of its 2009 fiscal year.

Net income for the first half of fiscal 2009 (Sept. 1, 2008 - Feb. 28, 2009) compares with $468.9 million for first six months of fiscal 2008. Total revenues for the first two quarters of fiscal 2009 were $12.9 billion and compared with $13.4 billion for the same period of 2008. Revenues for fiscal 2009 reflected lower values for many of the grain, refined fuels and crop nutrients products CHS markets.

Net income for the second quarter of fiscal 2009 (Dec. 1, 2008 - Feb. 28, 2009) was $82.3 million, compared with $168 million for the second quarter of fiscal 2008. Revenues for the quarter were $5.2 billion, down from $6.9 billion the previous year.

Year-to-date results for fiscal 2009 and for fiscal 2008, also reflected two significant events. During the first quarter of fiscal 2009, CHS recorded within its Processing segment a $70.7 million ($64.4 million net of taxes) impairment on the value of its ownership of VeraSun Energy Corp., an ethanol manufacturer that filed for bankruptcy protection and has since liquidated. During fiscal 2008, CHS recorded a gain of $91.7 million on the company's sale of stock in CF Industries, a crop nutrients manufacturer.

For the first six months of fiscal 2009, improved refining margins and increased propane demand, driven by cold winter weather, contributed to increased Energy earnings. The company's Ag Business segment - consisting of its crop nutrients, grain marketing and country retail operations - reported lower earnings due to reduced global grain demand and lower crop nutrient values. Earnings within the company's Processing segment declined from fiscal 2008, due in part to lower consumer demand for food and ingredients which impacted CHS joint venture food manufacturing and flour milling operations. The weak economy also contributed to lower earnings for the company's insurance, risk management and financial services businesses.

CHS Inc. (www.chsinc.com) 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 across the United States. 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.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2008, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.

                                CHS Inc. Earnings
                                   By segment
                                 (in millions $)

                                   Three months               Six months
                                       ended                    ended
                                  Feb 28,    Feb 29,     Feb 28,     Feb 29,
                                   2009       2008        2009        2008
    Energy                         75.1       44.7       259.8       153.2
    Ag Business                    13.0      120.0        32.7       324.7
    Processing                      9.2       28.0       (43.5)       48.2
    Corporate and Other            (1.1)       4.7         3.3         9.1
    Taxes                         (13.9)     (29.4)      (32.8)      (66.3)
    Net Income                     82.3      168.0       219.5       468.9

SOURCE CHS Inc.