Nov. 10, 2009 (PR Newswire) --
ST. PAUL, Minn., Nov. 10 /PRNewswire-FirstCall/ -- CHS Inc., a leading energy, grains and foods company, today reported fiscal 2009 net income of $381.4 million, the fourth-highest in the farmer-owned cooperative's nearly 80-year history.
Net income for fiscal 2009 (Sept. 1, 2008 - Aug. 31, 2009) compared with $803 million for fiscal 2008. Revenues for fiscal 2009 were $25.7 billion, down 20 percent from $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 (June 1 - Aug. 31, 2009) CHS reported earnings of $97.3 million on revenues of $6.7 billion. That compared with earnings of $145.4 million and revenues of $9.4 billion for the fourth quarter of fiscal 2008.
"Given the overall weak global economy and the extreme volatility many of our businesses experienced during fiscal 2009, we are very pleased with these results," said John Johnson, CHS president and chief executive officer. "Many of our businesses achieved record or near-record performance in 2009."
As a producer-owned cooperative, CHS returns a portion of its earnings to eligible owners. In 2009, based on fiscal 2008 performance, the company issued a record $347.2 million in cash patronage, equity redemptions, preferred stock and dividends. Based on 2009 earnings, CHS is expected to return about $220 million to owners during fiscal 2010, the fourth-highest return in company history.
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 $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. (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® 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, 2009, 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 Twelve months
ended ended
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Aug. 31, Aug. 31, Aug. 31, Aug. 31,
2009 2008 2009 2008
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Energy $60.9 $134.0 $359.5 $299.7
Ag Business 16.6 63.8 73.1 568.3
Processing 33.3 (71.1) 4.1 (5.8)
Corporate and Other 2.0 0.4 7.2 12.3
Taxes (15.5) 18.3 (62.5) (71.5)
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Net Income $97.3 $145.4 $381.4 $803.0
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SOURCE CHS Inc.
