CHS reports fiscal 2017 third-quarter results

Underlying business performance stable, one-time events cause quarterly loss
CHS Inc. the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, reported a net loss of $45.2 million for the third quarter of its 2017 fiscal year (three-month period ended May 31, 2017), compared to net income of $190.3 million for the same period one year ago. Consolidated revenues for the third quarter were $8.6 billion, compared to $7.8 billion for the third quarter of 2016, representing a 10 percent increase.
“Despite the economic challenges in agriculture and energy, several of our underlying businesses are having a solid year,” said CHS President and Chief Executive Officer Jay Debertin. “Unfortunately, we’ve experienced three negative one-time events this fiscal year that have resulted in charges leading to a loss in the third quarter and a significant earnings decline for the year to date. In response to these events, we are implementing measures to better identify risk management gaps in some of our processes and when necessary enhance our ability to effectively manage our risks.”
Pretax income for the nine-month period ended May 31, 2017, was $40.0 million, compared to $407.9 million for the nine-month period ended May 31, 2016. The decrease is primarily the result of charges related to a Brazilian trading partner entering into bankruptcy proceedings under Brazilian law, loan loss reserve charges, of which a significant portion relate to a single large producer borrower, and asset impairment charges.
Revenues for the nine-month period ended May 31, 2017, were $24.0 billion, compared to $22.2 billion for the nine-month period ended May 31, 2016, an increase of 8 percent.
“Throughout the world, agriculture and energy markets remain unpredictable and our owners and customers depend on us, so it’s our job to be prepared to succeed in any economic environment,” said Debertin. “That’s why we’re committed to improving our risk management practices across our businesses. Additionally we are refocusing on the areas we know best and in parts of the world where we need to be to serve the U.S. farmer. We will do this based on the core values and tenets CHS has built on for more than 85 years: trust, partnership and opportunity.”
The CHS Energy segment experienced a loss before income taxes of $9.3 million for the three months ended May 31, 2017, compared to income before taxes of $109.4 million for the same period in fiscal 2016. Results were primarily due to significantly reduced refining margins and a $32.7 million charge incurred due to a cancelled capital project. The company’s propane, transportation and lubricants businesses experienced decreases in earnings compared to the same period a year ago.

Tags:

Category:

Upcoming Events

Tuesday, April 23, 2019
Tuesdays, Noon, Beartooth Grill, 305 1st Ave. S.
Tuesday, April 23, 2019
Fourth Tuesdays, 7 p.m., Eagles Hall, 313 W. Main, 628-4503
Wednesday, April 24, 2019
10 a.m., Laurel Public Library, 720 West Third Street, Laurel, 628-4961
Wednesday, April 24, 2019
Every Wednesday at 5:30 p.m., check www.laurelexchangeclub.org for more info. Find them on Facebook www.facebook.com/laurelexchangeclub . Email them to find out meeting time and to join: clubinfo@laurelexchangeclub.org The club will have a meeting or volunteer activity. Meeting location is Sid's East Side Bar & Grill on first and third Wednesdays of each month. Members and guests eat free.  Volunteer activity on the second Wednesday of each month. Check their facebook page for updates.  Every fourth Wednesday is for a club social activity. 
Tuesday, April 30, 2019
Tuesdays, Noon, Beartooth Grill, 305 1st Ave. S.
Wednesday, May 1, 2019
10 a.m., Laurel Public Library, 720 West Third Street, Laurel, 628-4961

Poll

Milk Chocolate or Dark Chocolate?

The Laurel Outlook

 

Click Here to Check Out Our Latest Ads

We use Google cookies to determine our demographic of visitors to our site. You can opt out here.

We also use Twitter Analytics to track clicks from our twitter feed. 

You can find all the City Council documents that we have received here.