St. Paul / MN. (prn) CHS Inc., a leading energy and grain-based foods company in the United States, reported earnings of 137,3 million USD for the first quarter of its 2009 fiscal year.
Net income for the quarter (September 01 to November 30, 2008) compared with 300,9 million USD for the same period of fiscal 2008. Operating earnings for the quarter were 232,8 million USD compared with 248,2 million USD for the same period a year ago. Revenues for the quarter were 7,7 billion USD, up from 6,5 billion for the first quarter of fiscal 2008. The increased revenues were attributed to higher values in the first quarter of fiscal 2009 for grain and crop nutrient products the company handles compared with first quarter 2008.
Energy earnings for the quarter reflected strong performance within refined fuels for the quarter, along with a 15,7 million USD gain on the sale of CHS ownership of a seat on the New York Mercantile Exchange. Also within the energy segment, CHS propane, lubricants, renewable fuels marketing and transportation businesses reported slightly lower earnings compared with fiscal 2008.
Declining values and demand for both grain and crop nutrients resulted in lower earnings within the company´s Agro Business segment for the first quarter of fiscal 2009 when compared to the same period a year ago, although CHS local retail operations turned in strong performance. During the first quarter of fiscal 2008, CHS earnings included a gain of 91,7 million USD on the company´s sale of stock in CF Industries, a crop nutrients manufacturer.
The company´s Processing segment operating results were comparable to the same period a year ago, representing strong performance by its wholly owned oilseed processing operations, while reduced consumer demand driven by the national economic downturn resulted in slightly lower earnings for its portions of the Ventura Foods LLC, food and Horizon Milling LLC, wheat milling joint ventures. CHS also reported slightly lower earnings from its financing, insurance services and hedging businesses.
During the first quarter of fiscal 2009, CHS also recorded within its Processing segment a 70,7 million USD (64,4 million USD net of taxes) impairment on the value of its ownership of VeraSun Energy Corp., an ethanol manufacturer which filed for Chapter 11 bankruptcy protection in October 2008. CHS previously recorded an impairment of 71,7 million USD (55,3 million USD net of taxes) in the fourth quarter of fiscal 2008.
About: CHS Inc. is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, across the United States. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.
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