St. Paul, Minn.-Agriliance LLC reported a 40 percent dip in third quarter net income to $59.6 million on sales of $1.59 billion from the year-ago $83.3 million and $1.59 billion, respectively. Nine month net income was more than half off year-ago levels, to $27 million on sales of $2.78 billion from $56.6 million and $2.7 billion, respectively. For the quarter, crop nutrient volumes, which consist primarily of fertilizers and micronutrients, were down 17 percent, and crop nutrient margins were down significantly. Crop protection earnings declined compared to the same period in 2005, primarily as a result of reduced chemical rebates. Agriliance retail operations decreased, primarily due to higher operating and interest expenses. In the meantime, results at CHS Inc., which holds 50 percent of Agriliance, were up for the quarter and record-breaking for the year-to-date. CHS third quarter net income was $136.6 million on sales of $3.75 billion, up from the year-ago $106.9 million and $3.14 billion. Nine month net income set records, up at $331 million on sales of $10.4 billion from the year-ago $133.7 million and $8.5 billion, respectively. CHS said YTD earning reflect strong performance in all three of the company’s primary business segments: Energy; Ag Business, which consists of agronomy, retail, and grain marketing operations; and Processing, which includes grain-based ingredients and food businesses.
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