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CHS reports fiscal 2013 nine-month earnings of $869.6 million

Jul 10, 2013

ST. PAUL, Minn., July 10, 2013 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported earnings of $869.6 million through the third quarter of fiscal 2013.

The earnings attributable to CHS of $869.6 million for the period (Sept. 1, 2012 – May 31, 2013) represent a decline of about 3 percent from the $899.7 million reported for the first three quarters of fiscal 2012. Revenues for nine months were $33.5 billion, up 13 percent from $29.6 billion for the same period a year ago, reflecting increased year-to-date average prices and grain sales volumes.

Earnings for the third quarter (March 1 – May 31, 2013) were $250.8 million, down from $405.1 million for the same period in fiscal 2012. The decline was largely attributed to delayed spring planting in many areas which affected crop inputs movement, lower grain exports resulting from a reduced 2012 U.S. harvest and scheduled maintenance at the CHS Laurel, Mont., refinery. Revenues for the quarter were $11.9 billion, compared with $11.0 billion for the same three-month period in fiscal 2012.

Year-to-date, Energy segment earnings decreased slightly due to lower margins in  refined fuels partially offset by strong performance in propane, lubricants and transportation operations. Earnings for the CHS Ag segment declined through the third quarter primarily due to lower margins resulting from reduced grain exports and the late spring planting season which affected the company's wholesale crop nutrients businesses. Earnings also declined for CHS local Country Operations retail businesses as the late, wet spring reduced fertilizer movement.

CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category which recorded improved profitability through the third quarter of fiscal 2013. Earnings increased largely due to improved performance by the company's Business Solutions area, as well as its ownership in Ventura Foods, LLC, the company's packaged food joint venture, and Horizon Milling, a wheat milling joint venture.

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, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal 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.

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, 2012, 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 $)






For the Three Months Ended


 For the Nine Months

Ended


May 31,


May 31,


2013


2012


2013


2012











Energy

$220.4


294.7


707.6


734.1

Ag

40.0


131.9


202.7


289.5

Corporate and Other

19.1


14.1


50.4


37.8

Income before income taxes

279.5


440.7


960.7


1061.4

 Income taxes

27.2


34.0


87.0


86.6

 Net income

252.3


406.7


873.7


974.8

 Net income attributable to non-controlling interests

1.5


1.6


4.1


75.1

 Net income attributable to CHS Inc.

250.8


405.1


869.6


899.7









 

SOURCE CHS Inc.

For further information: Lani Jordan, (651) 355-4946, lani.jordan@chsinc.com


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