CHS Reports First Quarter Fiscal Year 2025 Earnings $244.8 Million in First Quarter Net Income Reflects Market Conditions ST. PAUL, Minn.--(BUSINESS WIRE)--January 08, 2025-- CHS Inc., the nation's leading agribusiness cooperative, today released results for its first quarter of fiscal year 2025. The company reported net income of $244.8 million and revenues of $9.3 billion for the quarter that ended Nov. 30, 2024, compared to net income of $522.9 million and revenues of $11.4 billion in the first quarter of fiscal year 2024. Key highlights for first quarter fiscal year 2025 financial results: --
Decreased selling prices for grains, oilseeds and refined fuels led to
lower revenues.
--
Despite strong sales volumes, Energy segment earnings declined due to
evolving market conditions negatively impacting refining margins.
--
Ag segment earnings were moderately lower due to softening oilseed
crush margins compared to historically high margins in the first quarter
of the prior fiscal year.
--
Equity method investments continued to perform well, with the CF
Nitrogen investment being the largest contributor.
"The energy industry is experiencing compressed refinery margins at the
same time that U.S. agriculture is seeing a weaker farm economy with a
globally competitive marketplace for grains and oilseeds," said Jay
Debertin, president and CEO of CHS Inc. "Just as we have for nearly 100
years, CHS is leveraging our efficient global supply chain, strong
relationships and expertise to navigate these changing markets, while
strategically investing to meet our owners' future needs."
Energy
Pretax earnings of $19.8 million for the first quarter of fiscal year
2025 represent a $247.1 million decrease versus the prior year period
and reflect:
--
Lower refined fuel margins due to less favorable market conditions,
including higher U.S. refinery capacity utilization and global
production
--
The positive impact of lower costs for renewable fuel credits, which
partially offset lower income from refined fuels
Ag
Pretax earnings of $166.7 million represent a $3.1 million decrease
versus the prior year period and reflect:
--
Decreased margins in oilseed processing due to a larger supply of
canola and soybean meal and oil across global markets, somewhat offset by
the timing impact of market adjustments
--
Market-driven price decreases in wholesale and retail agronomy
Nitrogen Production
Decreased market prices for urea, partially offset by lower natural gas
costs, contributed to pretax earnings of $25.2 million -- an $11.2
million decrease versus the prior year period.
Corporate and Other
Pretax earnings of $47.2 million represent a $3.3 million increase
versus the prior year period, primarily reflecting improved equity
method investment income.
CHS Inc. Earnings*
by Segment
(in thousands $)
Three Months Ended November 30,
---------------------------------------
2024 2023
------------- -------------
Energy $ 19,763 $ 266,835
Ag 166,652 169,720
Nitrogen Production 25,241 36,459
Corporate and Other 47,181 43,832
------------- -------------
Income before income taxes 258,837 516,846
Income tax expense (benefit) 13,244 (6,522)
------------- -------------
Net income 245,593 523,368
Net income attributable to
noncontrolling interests 803 445
------------- -------------
Net income attributable to CHS
Inc. $ 244,790 $ 522,923
============= =============
*Earnings is defined as income
(loss) before income taxes.
CHS Inc. (www.chsinc.com) creates connections to empower agriculture. As
a leading global agribusiness and the largest farmer-owned cooperative
in the United States, CHS serves customers in 65 countries and employs
approximately 10,000 people worldwide. We provide critical crop inputs,
market access and risk management services that help farmers feed the
world. Our diversified agronomy, grains, foods and energy businesses
recorded revenues of approximately $39 billion in fiscal year 2024. CHS
is committed to reducing our impact on the planet, finding and
developing new solutions in agriculture and energy, and investing in
ways to build a better future for our owners, customers, employees and
communities.
This document and other CHS Inc. publicly available documents contain,
and CHS officers, directors and representatives may from time to time
make "forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as
"anticipate," "intend," "plan," "goal," "seek," "believe," "project,"
"estimate," "expect," "strategy," "future," "likely," "may," "should,"
"will" and similar references to future periods. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on CHS current beliefs,
expectations and assumptions regarding the future of CHS businesses,
financial condition and results of operations, future plans and
strategies, projections, anticipated events and trends, the economy and
other future conditions. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of which
are outside of CHS control. CHS actual results and financial condition
may differ materially from those indicated in the forward-looking
statements. Therefore, you should not place undue reliance on any of
these forward-looking statements. Important factors that could cause our
actual results and financial condition to differ materially from those
indicated in the forward-looking statements are discussed or identified
in CHS filings made with the U.S. Securities and Exchange Commission,
including in the "Risk Factors" discussion in Item 1A of CHS Annual
Report on Form 10-K for the fiscal year ended August 31, 2024. These
factors may include changes in commodity prices; political, economic,
legal and other risks of doing business globally; ongoing wars and
global conflicts; global and regional factors impacting demand for CHS
products; the impact of inflation; the impact of competitive business
markets; any loss of members who choose to do business with other
companies instead of CHS; the impact of market acceptance of
alternatives to refined petroleum products; consolidation among CHS
suppliers and customers; nonperformance or nonpayment by contractual
counterparties; deterioration in credit quality of third parties who owe
CHS money; the effectiveness of CHS risk management strategies; actual
or perceived quality, safety or health risks associated with CHS
products; business interruptions, casualty losses and supply chain
issues; the impact of epidemics, pandemics, outbreaks of disease and
other adverse public health developments; the impact of workforce
factors; technological improvements and sustainability initiatives that
decrease demand for CHS products; security breaches or other disruptions
in CHS information technology systems or assets; increased scrutiny and
changing expectations with respect to environmental, social and
governance practices; failures or delays in achieving strategies or
expectations related to climate change or other environmental matters;
CHS ability to complete, integrate and benefit from acquisitions,
strategic alliances, joint ventures, divestitures and other nonordinary
course-of-business events; the impact of government policies, mandates,
regulations and trade agreements; changes in federal income tax laws or
CHS tax status; the impact and costs of compliance or noncompliance with
applicable laws and regulations; the costs of compliance with
environmental and energy laws and regulations; the impact of
environmental liabilities and litigation; the impact of seasonality; the
impairment of long-lived assets; CHS funding needs and financing
sources; financial institutions' and other capital sources' policies
concerning energy-related businesses; limits on CHS ability to access
equity capital due to its cooperative structure; and other factors
affecting CHS businesses generally. Any forward-looking statements made
by CHS in this document are based only on information currently
available to CHS and speak only as of the date on which the statement is
made. CHS undertakes no obligation to update any forward-looking
statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise
except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250108805120/en/
CONTACT: Krysta Larson
(651) 355-4587
Krysta.Larson@chsinc.com
(END) Dow Jones Newswires
January 08, 2025 11:20 ET (16:20 GMT)