CHS earnings climb 91% to record high in fiscal '11
Nov. 14, 2011
by Eric Schroeder
ST. PAUL, MINN. — Net income at CHS Inc. in the year ended Aug. 31 rose to $961,355,000, up 91% from $502,159,000 in fiscal 2010.
Revenues for the period also advanced, rising 46% to $36,915,834,000 from $25,267,931,000 in the same period a year ago.
“While we celebrate record results for fiscal 2011, our greatest achievement this past year continued to be adding value for our producer and member cooperative owners who count on CHS as a source of energy and crop production inputs, a connection to domestic and global grain markets, and access to risk management tools,” said Carl Casale, president and chief executive officer.
The company’s Ag Business segment, which consists of CHS’s agronomy, grain marketing and retail operations, posted operating earnings of $333,363,000, up 24% from $268,736,000 in fiscal 2010. Sales in the segment totaled $25,767,033,000, up 54% from $16,715,055,000 a year ago.
“Earnings from our wholesale crop nutrients business improved $34.9 million for the year ended Aug. 31, 2011, compared with fiscal 2010, primarily from increased volumes and improved margins,” CHS said in a Nov. 14 filing with the Securities and Exchange Commission. “Our country operations earnings increased $48.7 million during the year ended Aug. 31, 2011, compared to the prior year, primarily as a result of higher grain volumes and increased margins, including from acquisitions made over the past year.
“Our grain marketing earnings increased by $76.9 million during the year ended Aug. 31, 2011, compared with fiscal 2010, primarily as a result of a pre-tax gain on the sale of our investment in Multigrain AG (Multigrain) of $119.7 million, partially offset by an increase of $27.2 million of equity method losses from Multigrain and also higher expenses related to the expansion of our foreign operations.”
CHS said oilseed processing earnings increased by $5.7 million for the year ended Aug. 31, 2011, compared with the prior year, primarily due to improved crushing margins, partially offset by reduced refining margins.
Energy earnings rose 164% to $629,986,000 from $238,552,000, while sales increased 30% to $11,467,381,000 from $8,799,890,000.