CHS Inc. Posts Record Earnings
According to CHS, this marks the first time a U.S. agricultural cooperative has surpassed the $1 billion net profit milestone.
CHS' 2012 fiscal year ended on Aug. 31. During the 2011 fiscal year, it earned a profit of $961.4 million.
CHS is owned by farmers and ranchers and is a provider of renewable energy, grain marketing services and crop nutrients. The company operates petroleum refineries/pipelines and manufactures, markets and distributes the Cenex brand of refined fuels, lubricants, propane and renewable energy products.
CHS' energy division was the reason for the records earnings announcement. During fiscal 2012, the energy division earned a profit of $1.027 billion, compared to a profit of $629.9 during the prior fiscal year.
"The strength of our diverse CHS business portfolio, along with a strong domestic and global footprint, combined in 2012 to allow us to successfully navigate continued market volatility and deliver record results for the U.S. farmers, ranchers and cooperatives who own us," said Carl Casale, CHS president and CEO. "Continued strong performance has allowed CHS to invest in growing our business, maintain a strong balance sheet and -- most important -- return direct economic value to those who own this cooperative."
Based on its fiscal 2012 earnings, CHS stated it expects to return a record nearly $600 million in cash to its owners during fiscal 2013, which began on Sept. 1.
For its 2012 fiscal fourth quarter, CHS earned $360.9 million, vs. a $206.5 million net profit in the same time period in 2011.