You are here
ST. PAUL, Minn. -- CHS Inc., one of the nation's leading energy and grain-based foods companies, reported earnings of $136.3 million for the first quarter of its 2007 fiscal year, down from $154.2 million for the same period a year ago.
However, revenues for the quarter were $3.8 billion, an increase from $3.5 billion for the first quarter of fiscal 2006, the company reported.
CHS earnings reflected solid performance within each of its three business segments, the report stated. Energy earnings remained strong, but declined for the first quarter of 2007, reflecting reduced margins for gasoline, diesel and other refined fuels as markets eased from historic highs a year ago. Within the energy segment, CHS propane, lubricants, renewable fuels marketing and transportation businesses exceeded fiscal 2006 performance.
Earnings increased within the Ag Business segment, consisting of CHS agronomy, local retail facilities and grain marketing operations.
CHS retail operations reported strong performance for the first quarter of fiscal 2007 due to increased sales of farm inputs and energy products, along with good grain movement. The company's grain marketing operations also recorded earnings ahead of fiscal 2006 due to continued expanded domestic and global demand and high grain prices.
The company also recorded a $5.3 million gain on its sale of a portion of its shares of CF Industries, a crop nutrients manufacturer.
Within its Processing segment, earnings generated by oilseed processing and the company's portion of the Ventura Foods, LLC, contributed to a solid first quarter fiscal 2007.