CHS reports $54.6 million of net income for third quarter of fiscal 2019

Company reports net income of $650.9 million for first nine months of fiscal year

CHS Inc. today announced its financial results for the third quarter and the first nine months of fiscal year 2019.

CHS reported:

  • Net income of $54.6 million for the third quarter of fiscal 2019 compared to $181.8 million for the restated third quarter of fiscal 2018. One-time pre-tax gains of $124.1 million in the restated third quarter of fiscal year 2018 were not realized in the same time period in fiscal 2019. One-time pre-tax gains of $19.2 million related to the purchase of the remaining 75 percent share of West Central Distribution, LLC were realized in the third quarter of fiscal 2019.
  • Consolidated revenues of $8.5 billion for the third quarter of fiscal 2019 compared to $9.1 billion for the restated third quarter of fiscal 2018.
  • Net income of $650.9 million for the first nine months of fiscal 2019 compared to $535.5 million for the restated first nine months of fiscal 2018, an increase of 21.5 percent.
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Top way to keep water out of your diesel

By Steve Hinds, Senior Business Development Manager, CHS Refined Fuels Marketing from the Cenexperts blog

diesel powered tractor in a corn field

Incompatible people are often said to mix like oil and water. But if you really want to talk about an unfortunate combination, look no further than fuel and water. Water in a machine’s fuel line can be a one-way ticket to trouble.

The good news about water damage is it’s preventable. Here’s what you need to know about diesel fuel water contamination and how to keep it from sinking your operation.

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Ready for Change

By Annette Bertelsen, from Spring 2019 C magazine

What happens when the world’s biggest buyer suddenly backs away from U.S. soybeans? That’s been a question on everyone’s mind since July 6, 2018, when the United States implemented China-specific tariffs. The move embroiled U.S. farmers and cooperatives in a trade war that hit the soybean world particularly hard. Spring USDA data shows 2018–2019 soybean export inspections down nearly 34 percent from the year before, with farms and cooperatives struggling to handle huge carryover and reduced cash flow.

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Use Three Points of Contact When Climbing Ladders

Safety for our staff and member-owners is of the utmost importance to the team at CHS Prairie Lakes. Read below to learn more about how to safely climb ladders and up equipment.

Three Points of Contact

The safest way to mount and dismount vehicles, equipment, and ladders is to maintain three points of constant contact. That means one hand and two feet, or two hands and one foot – at all times. Anything less and you’re risking a fall. 

Proper form for climbing up equipment.

Tips for Using the THREE POINT System:
– Always face towards the equipment.
– Get a firm grip on the rails or handles.
– Look for obstacles on the ground before exiting.
– Mount and dismount when the equipment is stopped.
– Break the three-point contact only when you reach the ground, cab, or platform.
– Slow down and take extra care in wet, snowy, or icy weather.
– Avoid wearing loose or torn clothing that can catch on the equipment.
– Wear shoes with good support.

Common Mistakes to Avoid:
– Never jump – you may land off balance or on an uneven surface and fall.
– Don’t climb down with something in your free hand – put it on the vehicle floor and reach up for it when you get to the ground.
– Don’t use tires or wheel hubs as a step surface.
– Don’t use the door frame or door edge as a handhold.

See this and other seasonally-relevant safety tips on our website!

Meet Our 2019 Interns

Get to know members of our 2019 summer intern team below. The group started mid-May and will be with us until August, where all are returning to college to pursue a degree in their selected fields. We wish them all the best this summer and hope they learn a lot to utilize in their future careers!

Area producers share in local CHS patronage distribution

HERMAN, MINNESOTA, April 8, 2019 – Eligible farmer-owners of CHS Border States and CHS New Horizons, two retail businesses that consolidated on Sept. 1, 2018, and now form the CHS retail business based out of Herman, Minnesota, shared in the recent distribution of cash patronage and equity based on business done with the co-op.

“We’re extremely proud to share this important cooperative membership benefit with our customers,” said Jerry Kramer, general manager. “Delivering an economic return to them on the business they do with CHS is one more way we help our owners grow.”

CHS Border States allocated a total of $1,515,071.64 in patronage dividends to its eligible members based on business done Sept. 1, 2017 – Aug. 31, 2018, of which $267,713.25 is being paid out in cash. CHS New Horizons allocated a total of $2,215,658.20 in patronage dividends to its eligible members during that same time period, of which $592,958.38 is being paid out in cash.

Overall, CHS Inc. will return $150 million in cash patronage and equity redemption to its owners in 2019, part of the cooperative’s commitment to sharing profits with our owners and returning money to rural America where it can be reinvested in the community. More than 840 local cooperatives and 25,000 farmers share in this distribution of cash patronage and equity redemptions.

The percentage returned to owners is determined annually by the CHS Board of Directors.  

“Returning cash to our owners enables farmers, ranchers and cooperatives to invest in their own futures,” said Dan Schurr, chairman of the CHS Board.

In the past 12 years, CHS has returned about $3.5 billion to its owners in the form of cash patronage.

The Herman-based retail business delivers agronomy, energy and grain products and services to Minnesota and South Dakota ag producers and other customers from 19 locations. It is part of CHS Inc., a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients along with financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward–looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward–looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward–looking statements. Therefore, you should not rely on any of these forward–looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward–looking statements are discussed or identified in CHS public filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10–K for the fiscal year ended August 31, 2018. Any forward–looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to publicly update any forward–looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CHS supports hometown community safety initiative through donation to Ortonville Fire Department


Chuck Henningson, Kirby Athey & Jared Nordly

Herman, MN (May 2, 2019) – CHS announced a $1,550 grant to Ortonville Fire Department in Ortonville, MN. The funds supported the purchase of a gas meter, which will be used to assist responders during rescue calls. The gas meter is a hand-held sensor that is used to alert if there is a propane or natural gas leak and to confirm safe oxygen levels.

“We’re proud to support this project as a way to strengthen the community and see it thrive,” says Jared Nordly, CHS Agronomy Division Manager. “Projects like this are essential to enriching our rural area and the people who live here.”

The funds contributed by CHS were matched dollar for dollar by a CHS Seeds for Stewardship grant, which helps cooperatives grow their impact locally. Together, $1,550 will benefit Herman Fire Department.

“Cooperatives were founded on the principles of education, community involvement and cooperation,” says Nordly. “By combining resources, we are providing double the impact to our area and demonstrating the cooperative spirit.”

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Browns Valley, Chokio, Clinton, Donnelly, Fergus Falls, Herman, Milbank, Morris, Ortonville, Sisseton, Underwood & Wilmot, CHS is here to supply for your needs. For more on what’s new and to learn more about how our company gives back, visit us at www.chs-herman.com, like us on Facebook and follow us on Twitter.

Check for underground utilities before digging

Whether your spring to-do list includes building a fence or planting trees – breaking ground should always be done with caution. April is National Safe Digging Month so remember, your best line of defense before digging is to call 811, a free service that marks underground utilities and pipelines. Many of these are less than a foot underground. 

The process is simple: Call 811 or visit clickbeforeyoudig.com three days before a digging project, wait for underground utilities to be marked and don’t dig within two feet of those markers.  

digging

It’s best to call 811 any time you break ground, even if you think you know where a utility line is located. “In the U.S., an underground utility is hit every nine minutes, causing dangerous consequences,” says Tina Beach, public awareness specialist for CHS. “It takes a lifetime to build a farm, and it takes just one free call to keep it safe.”  

© 2019 CHS Inc.