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    CHS Reports Six-Month Earnings of $202.6M

    Results reflect significantly lower refining margins within its energy segment.

    ST. PAUL, Minn. -- CHS Inc., operator of the Cenex brand, reported $202.6 million in net income from company operations for the first six months of its 2010 fiscal year (Sept. 1, 2009-Feb. 28, 2010), a decease from the $219.5 million in net income posted during the same period of fiscal 2009.

    Revenues through the second quarter were $12.1 billion, also down slightly from $12.9 billion through the second quarter of fiscal 2009, reflecting lower values this fiscal year for the grain and crop nutrient products CHS handles, the company stated.

    For the second quarter of fiscal 2010 alone (Dec. 1, 2009-Feb. 28, 2010), earnings attributable to CHS operations were $82.7 million, up slightly from $82.3 million for the same quarter in fiscal 2009. Revenues for the second quarter were $5.9 billion, compared with $5.2 billion the previous year, according to the company.

    CHS said its six-month earnings reflected significantly lower refining margins within its energy segment, while the company's propane, lubricants and renewable fuels marketing businesses reported higher earnings compared to the first half of fiscal 2009.

    In addition, increased product margins and increased demand for both grain and crop nutrients contributed to "significantly improved earnings" within the company's Ag Business segment through the second quarter of fiscal 2010. Those factors also contributed to year-to-date performance by CHS local retail operations ahead of 2009 levels.

    The company's year-to-date 2010 Processing segment earnings increased over the same period a year ago, driven by strong performance by its wholly owned oilseed processing operations, and improved results from its portions of the Ventura Foods LLC vegetable oil-based food joint venture and Horizon Milling LLC wheat-milling joint ventures.

    CHS financing, insurance services and hedging businesses -- recorded under Corporate and Other -- reported slightly lower earnings through the second quarter of fiscal 2010. The company attributed this to continued low interest rates, which affect its financing business, offset by stronger earnings in the company's hedging subsidiary.

    CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, across the U.S. The company supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions such as insurance, financial and risk management services. CHS operates petroleum refineries/pipelines and manufactures, markets and distributes the Cenex brand of refined fuels, lubricants, propane and renewable energy products.

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