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ST. PAUL, Minn. -- CHS Inc., a leading energy and grain-based foods company, reported net income from company operations of $120 million for the first quarter of its 2010 fiscal year.
For the quarter, Sept. 1 through Nov. 30, 2009, the $120 million in net income attributable to CHS operations compared with $137.3 million for the same period of fiscal 2009. Revenues were $6.2 billion, down from $7.7 billion for the first quarter of fiscal 2009, reflecting lower values in the first quarter of fiscal 2010 for grain and crop nutrient products the company handles compared with first quarter 2009.
Earnings for the quarter were mixed within the energy segment as refining margins declined significantly from the previous year, while CHS propane, lubricants and renewable fuels marketing reported higher earnings compared with the first quarter of fiscal 2009.
Increased product margins and increased demand for both grain and crop nutrients contributed to significantly improved earnings within the company's Ag Business segment for the first quarter of fiscal 2010. CHS local retail operations also turned in strong performance for the quarter, the company said.
During the first quarter of fiscal 2009, CHS recorded an impairment of $70.7 million on its ownership in VeraSun Energy Corp. CHS no longer has a VeraSun investment value recorded.
In other news, the CHS Foundation, the company's charitable arm, will award 50 $1,000 scholarships for high school seniors planning to study an agricultural field at a two or four-year college. "We're excited to raise our high school scholarship allotment from 25 to 50 scholarships," said William Nelson, president, CHS Foundation. "This increase demonstrates the CHS Foundation's continuing commitment to help build the next generation of leaders in production, science technology and business agriculture."
High school seniors are invited to apply for a high school scholarship by visiting the University Partnerships of the CHS Foundation website (http: chsfoundation.org). The application deadline is April 1, 2010.
CHS Inc. is a diversified energy, grains and foods company. 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 Cenex brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.
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