CHS Reports Drop in Earnings, Revenue

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CHS Reports Drop in Earnings, Revenue

ST. PAUL, Minn. -- CHS Inc., operator of Cenex convenience stores, yesterday reported net income of $381.4 million for fiscal 2009 -- the fourth-highest in the farmer-owned cooperative's nearly 80-year history. That's compared to net income of $803 million for fiscal 2008.

Revenues for fiscal 2009 (Sept. 1, 2008, to Aug. 31, 2009) were $25.7 billion, down 20 percent from $32.2 billion in 2008, largely the result of lower values for the energy and grain commodities that make up the majority of CHS' sales, the company said.

For the fourth quarter of fiscal 2009, ended Aug. 31, CHS reported earnings of $97.3 million on revenues of $6.7 billion. That compared with earnings of $145.4 million and revenues of $9.4 billion for the fourth quarter of fiscal 2008.

Earnings for 2009 were led by the company's Energy segment, which includes its refined fuels, propane, lubricants and related support businesses. Strong refining margins and a growing retail presence contributed to refined fuels earnings.

"Given the overall weak global economy and the extreme volatility many of our businesses experienced during fiscal 2009, we are very pleased with these results," John Johnson, CHS president and chief executive officer, said in a statement. "Many of our businesses achieved record or near-record performance in 2009."

As a producer-owned cooperative, CHS returns a portion of its earnings to eligible owners. In 2009, based on its fiscal 2008 performance, the company issued a record $347.2 million in cash patronage, equity redemptions, preferred stock and dividends. Based on 2009 earnings, CHS said it expects to return about $220 million to owners during fiscal 2010, the fourth-highest return in the company history.

CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders across the U.S. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex-branded refined fuels.

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