ST. PAUL, MINNESOTA, US — Net income at CHS Inc. for the second quarter of fiscal 2020 decreased to $125.4 million, down 50% from $248.8 million in the second quarter of fiscal 2019.

Revenue for the second quarter increased slightly to $6.6 billion, up from $6.5 billion in the second quarter of 2019.

In the first six months of fiscal year 2020, the co-op’s net income fell 49% to $303.3 million, which compared with net income of $596.3 million in the first six months of fiscal year 2019.

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 pre-tax loss of $20.8 million in the second quarter of 2020 compared to pre-tax earnings of $62.4 million in the second quarter of 2019. CHS attributed the loss to poor weather conditions and continued global trade tensions that led to lower margins in its processing and food ingredients business. Despite the loss, CHS said it was cushioned by a strong wheat crop.

In the second quarter, the co-op’s Corporate and Other segment had pre-tax earnings of $4 million, which compared with pre-tax earnings of $7 million in the second quarter of 2019. CHS said non-operating gains were recognized during the second quarter of fiscal year 2019 that did not recur in the second quarter of fiscal year 2020.

The Energy segment’s pre-tax earnings decreased to $138.9 million in the second quarter of 2020, which compared with $306.6 million in the second quarter of 2019. CHS attributed the decrease to less advantageous market conditions in its refined fuels business that drove lower margins, due to a combination of lower crack spreads and decreased crude oil differentials on heavy Canadian crude oil, which is processed by CHS refineries.

“Today our top focus is on our core value of safety — including the health and safety of our employees, farmers, our owners, our customers, our local cooperatives and the communities where we live and work around the world — as we all navigate the impact of COVID-19,” said Jay Debertin, president and chief executive officer of CHS Inc. “The investments we’ve made in our infrastructure connect farmers and local cooperatives to the inputs and services they need during this busy spring season. This crop needs to get planted. Farmers will get this crop planted. And we will be there to be part of it as we support them and our communities.”

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