CHS Reports Third Quarter Fiscal Year 2024 Earnings
Third quarter fiscal year 2024 highlights:
- Financial performance was solid across our segments, although earnings were down from historically strong results in fiscal year 2023.
- Revenues decreased due to weaker commodity prices.
- Weaker grain and oilseed demand led to an earnings decline in our Ag segment compared to the prior year.
- More challenging market conditions, including less favorable refining margins, led to lower earnings in our Energy segment versus the previous year.
- Our equity method investments, led by our CF Nitrogen investment, performed well in evolving market conditions.
"Through the first nine months of our fiscal year, we have delivered strong financial results, including the third highest net income in our history," said
Energy
Pretax earnings of
- Decreased refining margins due to higher industry capacity utilization rates bringing additional refined fuel supply to the market, partially offset by lower costs for renewable fuel credits
- Higher costs for heavy Canadian crude oil
Ag
Pretax earnings of
- Lower crush margins in oilseed processing due to weaker meal and oil demand
- Decreased margins for wholesale and retail agronomy products, partly offset by higher volumes sold
- Compressed margins for our grain and oilseed product category caused by softer demand for
U.S. commodities as trade flows shift as a result of a competitive global grain market
Nitrogen Production
Pretax earnings of
Corporate and Other
Pretax earnings of
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by Segment |
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(in thousands $) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
Energy |
$ 97,850 |
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$ 198,995 |
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$ 416,264 |
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$ 860,411 |
Ag |
108,535 |
|
233,515 |
|
335,106 |
|
439,248 |
Nitrogen Production |
52,366 |
|
56,263 |
|
125,834 |
|
234,869 |
Corporate and Other |
51,117 |
|
69,347 |
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135,168 |
|
154,084 |
Income before income taxes |
309,868 |
|
558,120 |
|
1,012,372 |
|
1,688,612 |
Income tax expense |
12,613 |
|
10,777 |
|
21,416 |
|
66,305 |
Net income |
297,255 |
|
547,343 |
|
990,956 |
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1,622,307 |
Net (loss) income attributable to noncontrolling interests |
(19) |
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(156) |
|
452 |
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(111) |
Net income attributable to CHS Inc. |
$ 297,274 |
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$ 547,499 |
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$ 990,504 |
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$ 1,622,418 |
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*Earnings is defined as income (loss) before income taxes. |
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