CHS: Reports Earnings of 201,7 Million for Q1/2011

St. Paul / MN. (chs) CHS Inc., a leading energy, grains and foods company, reported net income from company operations of 201,7 million USD for the first quarter of its 2011 fiscal year. For the quarter – September 01 to November 30, 2010 – the 201,7 million USD in net income attributable to CHS operations was a 68 percent increase over earnings of 120 million USD for the same period of fiscal 2010. Revenues for the quarter were 8,1 billion USD, up from 6,2 billion USD for the first quarter of fiscal 2010, reflecting higher average values for the energy, grains and oilseeds, crop nutrients and processed oilseed products the company handles.

Earnings for the first quarter of fiscal 2011, compared with the same quarter for fiscal 2010, represented improved refined fuels margins for the company´s wholly owned Laurel, Montana, refinery and the National Cooperative Refinery Association, McPherson, Kansas, of which it owns nearly 75 percent. Earnings also increased for CHS renewable fuels marketing and its transportation operations, but declined within its propane, lubricants and energy equipment businesses. The company´s Ag Business segment recorded increased volumes and earnings during the first quarter of fiscal 2011, primarily driven by stronger global grain demand which boosted CHS grain marketing, crop nutrients and local retail business performance.

Year-over-year earnings for the CHS Processing segment declined in the first quarter of fiscal 2011 primarily due to the company´s own reduced oilseed crushing and refining margins resulting from higher soybean costs. Earnings generated by the company´s ownership in the Ventura Foods LLC, vegetable oil-based foods joint venture declined primarily due to higher ingredient costs, while the CHS share of earnings from the Horizon Milling LLC, wheat milling joint venture increased as a result of higher product margins. Increased financial and hedging activity resulted in higher year-over-year earnings in the first quarter of fiscal 2011 for CHS financing and hedging businesses in its Business Solutions area, while earnings from insurance services declined. Those earnings are recorded under Corporate and Other.

CHS Inc. is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 100 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.