ST. PAUL, Minn., Jan. 10, 2019 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), the nation's leading
farmer-owned cooperative and a global energy, grains and foods
company, today reported a net income of $347.1 million for the first quarter of fiscal
2019.
"Our strong first quarter results position us well as we start
our 2019 fiscal year," said Jay
Debertin, CHS president and chief executive officer. "We are
focused on making CHS our customers' first choice by advancing our
technology solutions and equipping employees to meet the changing
needs of our customers around the world. We will do this while
maintaining financial discipline and rigor."
Key financial highlights for the quarter that ended Nov. 30, 2018, include:
- Net income of $347.1 million, an
increase of $159.9 million from the
restated first quarter of fiscal 2018.
- Consolidated revenues of $8.5
billion, a $452.4 million
increase from the restated first period of fiscal 2018.
- Pretax income of $367.2 million,
an increase of $159.4 million from
the restated first period of fiscal 2018.
- Improved crude oil pricing, which drove higher refining
margins.
- Favorable market conditions in the crop nutrients business,
which resulted in higher margins.
- Improved earnings in the company's CF Nitrogen, Ardent Mills
and Ventura Foods investments.
First Quarter Fiscal 2019 Segment Results
The
following segment results were reported for the first quarter of
fiscal 2019 as compared to first quarter fiscal 2018.
ENERGY
The $112.0
million increase in Energy pretax earnings reflects the
following:
- Improved market conditions in the refined fuels business driven
by favorable crude oil pricing.
AG
The $5.1 million
increase in Ag pretax earnings was driven by the following:
- Improved pricing within the company's crop nutrients and
processing and food ingredients businesses and volume increases
within grain and processing.
NITROGEN PRODUCTION
The $18.0
million increase in Nitrogen Production pretax earnings
reflects the following:
- Improved margins within the Nitrogen Production business driven
by increased sales prices of urea and UAN, which are produced and
sold by CF Nitrogen.
CORPORATE AND OTHER
The $24.3
million increase in Corporate and Other pretax earnings
reflects the following:
- Higher earnings from the company's investments in Ventura
Foods, LLC and Ardent Mills, LLC as well as increased interest
revenue from the company's financing business.
In late December 2018, CHS, a 25
percent owner of West Central Distribution, exercised its option to
purchase the remaining 75 percent of the respected crop protection
distribution company and is in the process of completing due
diligence and satisfying regulatory, legal and other
requirements.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned
by farmers, ranchers and cooperatives across the United States. Diversified in energy,
agronomy, grains and foods, CHS is committed to helping its
customers, farmer-owners and other stakeholders grow their
businesses through its domestic and global operations. CHS supplies
energy, crop nutrients, grain marketing services, animal feed, food
and food ingredients along with financial and risk management
services. The company operates petroleum refineries/pipelines and
manufactures, markets and distributes Cenex® brand
refined fuels, lubricants, propane and renewable energy
products.
This document and other CHS Inc. publicly available documents
contain, and CHS officers and representatives may from time to time
make, "forward–looking statements" within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Report
Act of 1995. Forward–looking statements can be identified by words
such as "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Forward–looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
CHS current beliefs, expectations and assumptions regarding the
future of its businesses, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward–looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of CHS control. CHS actual results and financial
condition may differ materially from those indicated in the
forward–looking statements. Therefore, you should not rely on any
of these forward–looking statements. Important factors that could
cause CHS actual results and financial condition to differ
materially from those indicated in the forward–looking statements
are discussed or identified in CHS public filings made with the
U.S. Securities and Exchange Commission, including in the "Risk
Factors" discussion in Item 1A of CHS Annual Report on Form 10–K
for the fiscal year ended August 31,
2018. Any forward–looking statements made by CHS in this
document are based only on information currently available to CHS
and speak only as of the date on which the statement is made. CHS
undertakes no obligation to publicly update any forward–looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
CHS Inc.
Earnings* by Segment
(in millions
$)
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
|
Nov.
30,
|
|
|
|
|
2018
|
|
(As restated)
2017
|
|
|
|
|
|
Energy
|
|
|
$232.4
|
|
$120.4
|
|
Ag
|
|
|
80.3
|
|
75.2
|
|
Nitrogen
Production
|
|
|
23.7
|
|
5.7
|
|
Corporate and
Other
|
|
|
30.8
|
|
6.5
|
|
Income before income
taxes
|
|
|
367.2
|
|
207.8
|
|
Income tax expense
(benefit)
|
|
|
20.1
|
|
20.6
|
|
Net income
(loss)
|
|
|
347.1
|
|
187.2
|
|
Net income
attributable to non-controlling interests
|
|
|
(0.4)
|
|
(0.4)
|
|
Net income (loss)
attributable to CHS Inc.
|
|
|
$347.5
|
|
$187.6
|
|
|
*Earnings is
defined as income (loss) before income taxes.
|
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SOURCE CHS Inc.