CHS earnings decline in second quarter
April 4, 2014
by World Grain Staff
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ST. PAUL, MINNESOTA, U.S. — CHS Inc. reported on April 3 a drop in second-quarter earnings to $260.1 million, compared with $275.1 million for the same period a year ago, due to lower overall earnings for its energy segment.
Revenues for the quarter were $9.7 billion, compared to $9.9 billion for the same quarter in 2013.
Earnings for the first six months of fiscal 2014 were down 19% to $502.3 million from $618.8 million for the first six months of fiscal 2013. Revenues for the period were $20.7 billion, compared with $21.6 billion. CHS said the decline was due to a drop in commodity price for many of the grain, crop nutrients and processed oilseed products the company handles, as well as refined fuels.
CHS grain marketing and locally controlled Country Operations retail businesses reported improved earnings for the six-month period due to strong logistical performance and improved margins. CHS processing and food ingredients operations recorded lower earnings overall, primarily due to lower soybean crushing margins.
CHS reports results for its business services operations and its two food processing-related joint ventures under the Corporate and Other category which increased overall earnings through the second quarter of fiscal 2014. Earnings declined for the company financing, insurance and hedging businesses, but rose for its portion of earnings generated by Ventura Foods, LLC, a packaged food joint venture, and Horizon Milling, a wheat milling joint venture.