CHS Inc., St. Paul, Minn., reported net income of $229.3 million for the third-quarter ending May 31, 2018, up from a year-ago loss of $45.2 million. The year-ago figure reflected major writedowns due in part to the cooperative’s business in Brazil.
Third-quarter consolidated revenues were $9 billion, up from the year-ago $8.6 billion.
Nine-month net income was $576.1 million compared with the year-ago $178.5 million. Revenues were $23.9 billion, on par with the same time period the prior fiscal year.
Results for the quarter were attributed to higher operating margins in the company’s Ag and Energy segments compared to prior years, primarily driven by higher margins in feed and farm supplies, crop nutrients, processing and food ingredients and refined fuels. CHS also reported higher volumes in the Ag segment, driven by feed and farm supplies, and processing and food ingredients. In addition, sales of certain assets and businesses within the Energy segment and Corporate and Other, resulted in cash proceeds that were used to eliminate the need for incremental long-term debt and reduce existing debt. CHS also noted the recovery of certain reserve and impairment charges during fiscal 2018, primarily in the Ag segment.