ST. PAUL, MINNESOTA, U.S. — Net income at CHS Inc. for the third quarter of fiscal 2019 decreased to $54.6 million compared to $181.8 million for the restated third quarter of fiscal 2018.

CHS noted a one-time pre-tax gain of $124.1 million in the restated third quarter of fiscal year 2018 were not realized in the same time period in fiscal 2019. One-time pre-tax gains of $19.2 million related to the purchase of the remaining 75% share of West Central Distribution, LLC were realized in the third quarter of fiscal 2019.

"The uncertainty of the international trade markets continues to create difficult circumstances for all who work in agribusiness,” said Jay Debertin, CHS president and chief executive officer (CEO) said. “Weather challenges led to late planting that has hurt our owners – America's farmers and cooperatives that help grow the food to feed the world. We traveled throughout our trade territory this spring to meet with our owners, and every location we visited was impacted by heavy spring rains and late planting. At CHS, we are working to navigate external challenges, and we are committed to leveraging the strength of our supply chain to help our owners and customers navigate as the year progresses."

Revenue for the third quarter fell slightly to $8.5 billion for fiscal 2019 from $9.1 billion for the restated third quarter of fiscal 2018.

Net income of $650.9 million for the first nine months of fiscal 2019 compared to $535.5 million for the restated first nine months of fiscal 2018, an increase of 21.5%.

The ag segment, which includes domestic and global grain marketing and crop nutrients, renewable fuels, local retail operations, and processing and food ingredients businesses, had a $39 million decrease in pretax earnings for the third quarter. CHS attributes the low drive toward decreased margins and volumes for grain and oilseed, poor weather conditions including heavy snow and rainfall, historic flooding on waterways and continuing global trade tensions.

In the third quarter, the co-op’s Corporate and Other segment also saw a decrease of $4.9 million due to a gain in the third quarter of fiscal 2018 from the sale of CHS Insurance that did not recur in the third quarter of fiscal 2019.

The Energy segment’s pretax earnings saw a $92.7 million decrease in the third quarter.

“Scheduled maintenance at our refinery in McPherson, Kansas, slowed production of refined fuels; but that maintenance investment will enable CHS to better serve our owners and rural America in the long term,” Debertin said.

CHS also noted the decrease in earnings were due to the return of Canadian crude oil prices to more normalized levels, where they are expected to remain for the rest of fiscal year 2019.

"Our cooperative continues to perform well through the first nine months of the fiscal year. Though our net income was down compared to the prior year third quarter of fiscal 2018, the first nine months of fiscal year 2019 have been strong," Debertin said. "During the third quarter, we completed the acquisition of the remaining 75% ownership interest in West Central Distribution, LLC, a full-service wholesale distributor of agronomy products headquartered in Willmar, Minnesota. The acquisition demonstrates our commitment to provide more of the products, services and technology our owners need to compete.”