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CHS third-quarter profit rises as agronomy and energy improve

CHS reported third-quarter net income attributable to the company of $267.4 million, up from $232.2 million a year earlier, as agronomy pretax earnings climbed to $275.0 million.

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CHS, Inc. reported higher third-quarter results for the quarter ended May 31, with net income attributable to the company rising and revenue increasing, driven by improvements in its agronomy and energy segments, World Grain said. Net income attributable to CHS was $267.4 million, up from $232.2 million in the same quarter a year ago.

Revenue rose to $11.6 billion from $9.8 billion a year earlier, as the cooperative pointed to strong operational execution during the spring planting season. CHS said its ag and energy business diversity remains a key strength amid shifting policy and market conditions, while it continues to manage costs and operate efficiently for its owners.

In agronomy, CHS posted pretax earnings of $275.0 million, up $27.6 million versus the prior-year period. The company attributed results to performance in its CF Nitrogen equity method investment for urea and UAN, while noting reduced fertilizer sales volumes tied to a weak US farm economy.

In its grains segment, CHS recorded a pretax loss of $33.6 million, compared with a $32.9 million loss a year earlier. The company said reduced global grain margins and higher transportation costs were partly offset by strong corn export volumes, while oilseed volumes and oilseed crush margins improved in response to US biofuels policy enhancements and feedstock impacts.

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