USA – CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, has reported net income of US$229.3 million for the third quarter of its 2018 fiscal year, ended May 31, 2018, compared to a net loss of US$45.2 million for the same time period a year ago.
According to the company, the consolidated revenues for the third quarter of fiscal 2018 were US$9.0 billion, up from US$8.6 billion for the third quarter of fiscal 2017. Pretax income was US$289.4 million for the third quarter of fiscal 2018, compared to a loss of US$209.2 million for the same period the prior fiscal year.
“Thanks to the hard work of many throughout CHS, we’ve made great strides this year in strengthening relationships, optimizing operations and improving results from our core businesses,” said CHS President and CEO Jay Debertin.
“The steps we’ve taken will better position us to navigate the inevitable cycles in agriculture and energy.
I am proud of our team and their dedication and commitment to operating with excellence.”
The company added that for the first nine months of fiscal 2018, it reported net income of US$576.1 million compared with earnings of US$178.5 million for the same period in fiscal 2017.
Revenues for the first nine months of fiscal 2018 were US$23.9 billion, on par with the same time period the prior fiscal year.
Results for the quarter were attributed to the higher operating margins in the company’s Ag and Energy segments compared to prior years, primarily driven by higher margins in feed and farm supplies, crop nutrients, processing and food ingredients and refined fuels
The higher volumes in the Ag segment compared to the same quarter prior year were driven by feed and farm supplies, and processing and food ingredients.
The sales of certain assets and businesses within the Energy segment and Corporate and Other, also resulted in cash proceeds that were used to eliminate the need for incremental long-term debt and reduce existing debt.
“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.”
For the third quarter of fiscal 2018, the energy generated pretax income of US$95.4 million during the third fiscal quarter compared to a loss of US$9.3 million during the same period last year.
The US$104.7 million increase also reflected 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, and 34 Zip Trip stores located in the Pacific Northwest.