CHS Inc. reported that sales volumes from its Wholesale crop nutrient business were up 25 percent for the third quarter ending May 31, 2012. Revenues totaled $1.1 billion, up 43 percent, or $336.9 million from the year-ago quarter. Of the increase, $144.3 million was related to increased average fertilizer prices and $192.6 million was due to increased volumes. The average sales price of all fertilizers sold reflected an increase of $66.38/st, or 15 percent. Income was also up for the unit due to increased volumes and product margins.
CHS Country Operations, which sells crop nutrients, feed, crop protection, and energy products, reported record thirdquarter earnings due to heavy spring fieldwork and retail merchandise operating margins. Revenues were also up. As of May 31, 2012, CHS reported crop nutrient inventories valued at $202.2 million, down from the year-ago $325.2 million. They stood at $389.7 million March 31, 2012.
As of May 31, 2012, CHS had 699,000 st in crop nutrient purchase contracts and 894,000 st in sales contracts, compared to the year-ago 881,000 st and 1,251,000 st, respectively. March 31, 2012 purchase contracts were 1,177,000 st and sales at 1,420,000 st.
Crop nutrients are in the CHS Ag Business segment, which reported third-quarter operating income of $139.8 million on sales of $8 billion, compared to the year-ago $104.8 million on sales of $7.51 billion. Income before income taxes, however, was down at $131.9 million from $209.5 million.
Company-wide, CHS reported net income attributable to CHS was up 13 percent to $405.1 million on revenues of $11 billion, up from the year-ago $358.5 million and $10.5 billion, respectively. CHS attributed the increased earnings to the strong performance of its Energy segment.
Nine-month Wholesale crop nutrient volumes saw a 13 percent increase in volumes. Revenues totaled $2.3 billion, up $582.5 million (34 percent) from the year-ago period. Of this, $357.6 million was related to increased fertilizer prices, while $224.9 million was increased volumes. Fertilizer prices were up $78/st, or 18 percent over the year-ago levels. Again, CHS said Wholesale income was up.
Nine-month Country Operation income was flat, reflecting increased retail merchandise margins and decreased grain margins. Revenues were up.
The Ag Business segment reported nine-month operating income of $314.3 million on sales of $20.4 billion, down from the year-ago $340 million on sales of $18.5 billion. Income before income taxes was $289.5 million, down from $451.4 million.
Cooperative-wide, CHS reported nine-month net income was up 19 percent to $899.7 million on revenues of $29.6 billion, up from the year-ago $754.8 million on sales of $26.3 billion. CHS cited higher values for energy and crop nutrients products for the increase.