For the third quarter ended May 31, CHS posted net income of $229.3 million, compared to a loss of $45.2 million in the same period a year ago. Revenue for the third quarter was $9 billion, up from $8.6 billion for the third quarter of fiscal 2017.
For the first nine months of fiscal 2018, CHS posted a net income of $576.1 million, up compared to $178.5 million for the same period a year ago. Revenue for the first nine months of fiscal 2018 were $23.9 billion.
|Jay Debertin, CHS president and CEO|
The Ag segment, which includes domestic and global grain marketing and crop nutrients, renewable fuels, local retail operations, and processing and food ingredients businesses, generated pretax income of $111.4 million for the quarter compared to a loss of $221.2 million for the same period in the previous year.
In addition to the non-reoccurrence of significant reserve and impairment charges recorded in the third quarter of fiscal 2017, the $332.6 million increase was also the result of increased volumes and margins in feed and farm supplies, processing and food ingredients and retail operations. CHS noted the increase was partially offset by reduced crop nutrients volumes resulting from the compressed planting season across the U.S. Midwest.
Energy generated a pretax income of $95.4 million during the third fiscal quarter compared to a loss of $9.3 million during the same period last year.
“The $104.7 million increase reflects improved margins in the refined fuels business, and gains associated with the sale of the Council Bluffs pipeline and refined fuels terminal in Council Bluffs, Iowa, U.S. and 34 Zip Trip stores located in the Pacific Northwest,” CHS said.
The company’s Corporate and Other segment include the company's wheat milling joint venture (Ardent Mills), its investment in Ventura Foods, LLC (Ventura Foods), and its financing and hedging operations. Prior to its sale on May 4, 2018, the company's insurance subsidiary was also included within Corporate and Other. The combined businesses generated pretax income of $63.8 million in the third quarter compared to $12.6 million in the same period a year prior.
The $51.2 million increase was due to a gain on the sale of CHS Insurance which was partially offset by lower Ventura Foods earnings and reduced interest revenue from the company's finance business.
"We're on the right path, and the cooperative system's strengths and capabilities were evident during the compressed spring season," said Debertin. "We will continue to focus on meeting the needs of farmers and rural communities, leveraging our strong supply chain to help improve profitability for our owners."