CHS FY15 income off 28 percent – Alert
CHS Inc. Inc. earnings for fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015) were $781 million down 28 percent from more than $1.1 billion for fiscal 2014, reflecting singular events as well as lower margins across CHS energy and agriculture businesses. Revenues for the year were $34.6 billion, down 19 percent from $42.7 billion for fiscal 2014, primarily due to lower values for the commodity energy and grains products it handles.
"Our core businesses of agriculture and energy have entered a global down cycle which affected both earnings and revenues for fiscal 2015," said Carl Casale, president and CEO. "Nonetheless, we continue to fulfill our commitment to our owners by making significant investments in the future of our businesses; providing direct economic returns and maintaining a strong financial foundation for the future."
CHS Ag segment earnings for fiscal 2015 also declined overall, driven primarily by a $116.5 million impairment associated with the decision to cease development of a nitrogen fertilizer plant at Spiritwood, N.D. Ag earnings were $149.6 million down from $213.4 million. In addition, grain marketing earnings decreased primarily as a result of robust logistical performance in fiscal 2014 which did not reoccur in fiscal 2015, as well as growth-related expenses and foreign exchange losses which were partially offset by increased margins. Within the company’s Country Operations local retail, animal nutrition and sunflower businesses, earnings declined due to lower retail agronomy margins and growth expenses, but were partially offset by higher grain volumes and margins. CHS wholesale crop nutrients earnings increased in fiscal 2015 compared to fiscal 2014 due to increased margins partially offset by decreased volumes.
In fiscal 2015, based on fiscal 2014 earnings, CHS returned $533.8 million to its owners in cash patronage, equity redemptions, preferred stock and dividends on preferred stock to its owners.