SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

News Feed Item

CHS posts record fiscal 2012 earnings of $1.26 billion

ST. PAUL, Minn., Nov. 7, 2012 /PRNewswire/ -- CHS Inc. (Nasdaq: CHSCP), the nation's leading farmer-owned cooperative, today reported record fiscal net income of $1.26 billion for 2012, the first time a U.S. agricultural cooperative has surpassed the $1 billion earnings mark.

Net income of $1.26 billion for the year ending Aug. 31, 2012, increased 31 percent from the $961.4 million reported for fiscal 2011, which was also a record. Largely as a result of increased values for the energy, crop nutrients, grains and other commodities that comprise the majority of the company's business, CHS also set a new mark for revenues at $40.6 billion in fiscal 2012. That figure represents a 10 percent increase from the previous record of $36.9 billion, also set in fiscal 2011.

"The strength of our diverse CHS business portfolio, along with a strong domestic and global footprint, combined in fiscal 2012 to allow us to successfully navigate continued market volatility and deliver record results for the U.S. farmers, ranchers and cooperatives who own us," said Carl Casale, CHS president and chief executive officer. "Continued strong performance has allowed CHS to invest in growing our business, maintain a strong balance sheet and – most important – return direct economic value to those who own this cooperative."

Based on fiscal 2012 earnings, CHS expects to return a record nearly $600 million in cash to its owners during fiscal 2013.

For the fourth quarter of fiscal 2012 (June 1Aug. 31, 2012), CHS reported earnings of $360.9 million, compared with $206.5 million for the same period a year ago. Revenues for the fourth quarter of fiscal 2012 were $11.0 billion, compared with $10.6 billion for the final quarter of fiscal 2011.

Strong petroleum refining margins at the company's refineries at Laurel, Mont., and McPherson, Kan., helped drive record performance within the Energy segment which led overall CHS earnings. CHS also reported strong performance for its propane, and transportation businesses, while lubricants and renewable fuels marketing results were behind those of fiscal 2011.

The company's Ag segment earnings were led by record profitability for the CHS Country Operations unit. Earnings for Country Operations – which consists of local retail facilities, livestock nutrition and sunflower processing – were largely due to strong local crop nutrients movement and solid grain volume during fiscal 2012. The overall CHS crop nutrients business also recorded strong performance driven by significant product movement in spring 2012. The company's own grain marketing operations performed well under challenging fiscal 2012 market conditions, while processing and food ingredients results declined largely due to acquisition and investment expenses. Overall Ag segment earnings for fiscal 2012 declined from fiscal 2011 which included a pre-tax gain of $119.7 million on that year's sale of the CHS investment in Multigrain S.A., a Brazil-based joint venture.

CHS reports results for its business services operations, as well as two food processing-related joint ventures under the Corporate and Other heading. CHS own insurance, risk management and financing businesses combined earnings were flat for fiscal 2012. The company recorded strong contributions from its 50 percent ownership of Ventura Foods, LLC, a vegetable oil-based food manufacturing business, as well as from its 25 percent share of Horizon Milling, LLC, the nation's leading wheat miller.

CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, 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.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2012, which can be found on the Securities and Exchange Commission website (www.sec.gov) or on the CHS website www.chsinc.com.

CHS Inc. Earnings

By segment

(in millions $)

 


For the Three Months Ended


 For the 12 Months Ended


Aug. 31,


Aug. 31,


2012


2011


2012


2011











Energy

$293.4


$234.0


$1,027.5


$629.9

Ag

37.9


(16.6)


327.4


434.8

Corporate and Other

23.8


19.0


61.7


83.0

 Income before income taxes

355.1


236.4


1,416.6


1,147.7

 Income taxes

5.8


0.5


(80.9)


(86.6)

 Net income

360.9


236.9


1,335.7


1,061.1

 Net income attributable to non-controlling

  interests

(0.0)


(30.4)


(75.1)


(99.7)

 Net income attributable to CHS Inc.

$360.9


$206.5


$1,260.6


$961.4

















 

SOURCE CHS Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...