CHS Reports Earnings of $120 Million for 1st Quarter 2010

Jan 11, 2010, 15:56 ET from CHS Inc.

ST. PAUL, Minn., Jan. 11 /PRNewswire-FirstCall/ -- CHS Inc. (Nasdaq: CHSCP), a leading energy and grain-based foods company, today reported net income from company operations of $120 million for the first quarter of its 2010 fiscal year.

For the quarter (Sept. 1 - Nov. 30, 2009), the $120 million in net income attributable to CHS operations compared with $137.3 million for the same period of fiscal 2009. Revenues were $6.2 billion, down from $7.7 billion for the first quarter of fiscal 2009, reflecting lower values in the first quarter of fiscal 2010 for grain and crop nutrient products the company handles compared with first quarter 2009.

Earnings for the quarter were mixed within the Energy segment as refining margins declined significantly from the previous year, while CHS propane, lubricants and renewable fuels marketing reported higher earnings compared with the first quarter of fiscal 2009.

Increased product margins and increased demand for both grain and crop nutrients contributed to significantly improved earnings within the company's Ag Business segment for the first quarter of fiscal 2010. CHS local retail operations also turned in strong performance for the quarter.

The company's first quarter 2010 Processing segment earnings increased over the same period a year ago, driven by both strong performance by its wholly owned oilseed processing operations and improved results for its portions of the Ventura Foods, LLC, vegetable oil-based food joint venture and Horizon Milling, LLC, wheat milling joint ventures. During the first quarter of fiscal 2009, CHS recorded an impairment of $70.7 million on its ownership in VeraSun Energy Corp. CHS no longer has a VeraSun investment value recorded.

CHS financing, insurance services and hedging businesses, recorded under Corporate and Other, reported slightly lower earnings for the first quarter of fiscal 2010, attributed in part to reduced market volatility, soft insurance markets and low interest rates.

CHS Inc. ( 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 ( or on the CHS web site

                                                 CHS Inc. Earnings
                                                    By segment
                                                  (In millions $)

                                             Sept. 1 - Nov. 30

                                              1stQ 2010   1stQ 2009
                                              ---------   ---------

    Energy                                        $14.3      $206.8
    Ag Business                                    91.7        19.8
    Processing                                     30.8       (52.7)
    Corporate and Other                             1.3         4.4
    Taxes                                         (15.6)      (18.9)
    -----                                         -----       -----
    Net Income                                    122.5       159.4
    Net Income attributable to non-
     controlling interests                         (2.5)      (22.1)
    -------------------------------                ----       -----
    Net income attributable to CHS Inc.          $120.0      $137.3
    -----------------------------------          ------      ------