CHS earnings down sharply in third quarter
July 10, 2009
by Eric Schroeder
ST. PAUL, MINN. — Net income at CHS Inc. in the third quarter ended May 31 fell to $64,569,000, down sharply from $188,716,000 in the third quarter of fiscal 2008. Revenues for the period also declined, falling 34% to $6,163,119,000 from $9,336,609,000 in the same period a year ago. Decreased sales were attributed to lower values for many of the grain, refined fuels and crop nutrients products CHS markets. The company’s Ag Business segment, which consists of agronomy, grain marketing and retail operations, posted operating earnings of $22,654,000, down sharply from $149,681,000 in the third quarter of fiscal 2008. Sales in the segment totaled $4,388,338,000 in the most recent quarter, down 27% from $6,005,755,000 a year ago. Earnings within CHS Processing operations, which include oilseed processing, wheat milling, food production and renewable fuels, also fell during the quarter. CHS sustained a loss in the division of $4,037,000, which compared with earnings of $14,583,000 in the same period a year ago. Sales totaled $252,067,000, down from $353,475,000.