Home Americas Americas: Farmer-owned CHS reports lower earnings in 2015

Americas: Farmer-owned CHS reports lower earnings in 2015

CHS Inc, US-based farmer-owned cooperative and a global energy, grains and foods company, has reported earnings of US$649.6 million for the first three quarters of its 2015 fiscal year.

The earnings attributable to CHS for the period (September 1, 2014 – May 31, 2015) represented a decrease of 26% from the US$881.7 million reported for the first three quarters of fiscal 2014.

Revenues for first nine months of fiscal 2015 were US$26.6 billion, down 19% from US$32.7 billion for the same period a year ago, primarily due to lower average prices for the refined energy products, grains and fertilizer that make up a significant portion of CHS business.

Earnings for the third quarter of fiscal 2015 (March 1– May 31, 2015) were US$178.1 million, down 53% from US$379.5 million for the same period of fiscal 2014.

The third quarter of fiscal 2014 included a one-time gain of US$108.8 million attributed to the establishment of the Ardent Mills flour milling joint venture in May 2014.

Fiscal 2015 third quarter revenues of US$8.7 billion declined 28% from the same three-month period a year ago.

CHS Ag segment earnings through the third quarter also declined.

This decrease was attributed to lower earnings from logistics within grain marketing compared with the first three quarters of fiscal 2014, as well as lower grain and wholesale crop nutrients volumes.

In addition, through the third quarter of fiscal 2015, CHS retail facilities experienced lower agronomy margins.

Earnings for CHS renewable fuels marketing and production operations declined due to lower market prices which resulted in lower marketing commissions; those lower earnings were partially offset by the 2014 acquisition of an ethanol plant in the US.