ST. PAUL, Minn., Jan. 7, 2021 /PRNewswire/ — CHS Inc. (NASDAQ: CHSCP), the nation’s leading agribusiness cooperative, today reported net income of $69.7 million for the first quarter of fiscal year 2021 that ended Nov. 30, 2020. This compares to net income of $177.9 million in the first quarter of fiscal year 2020.
The results for the first quarter of fiscal year 2021 reflect:
- Revenues of $8.7 billion compared to revenues of $7.6 billion for the first quarter of fiscal year 2020.
- Impacts in the CHS Energy segment that included:
- Exceptionally low crack spreads and other unfavorable market conditions in our refined fuels business, driven primarily by the COVID-19 pandemic, resulted in volume and price declines that significantly reduced earnings in our Energy segment compared to the same period of the prior year.
- Decreased propane demand that resulted from warmer and drier fall weather during the first quarter of fiscal 2021 compared to the same period of the prior year.
- Impacts in the CHS Ag segment that included:
- Improved relations between the United States and foreign trading partners that drove increased volumes and margins for grain and oilseed.
- Favorable weather conditions during fall harvest compared to the prior year that drove increased volumes and margins across much of our Ag segment.
“Our employees’ commitment throughout the first quarter allowed us to consistently deliver products and services to our owners and customers around the world,” said Jay Debertin, president and CEO of CHS Inc. “A good growing season led to a good harvest season, and we saw commodity price rallies from spring and summer carry into fall. Those good weather conditions led to the highest volume fall fertilizer season we’ve seen since 2013 despite volatility in the nitrogen and phosphate markets.
“Improved trade opportunities with China and improved trade activity in Europe and Africa helped drive first quarter improvement in our global grain business. Our animal nutrition volumes also saw growth in the first quarter of fiscal year 2021,” Debertin said. “We saw year-over-year increases in premium diesel sales with rural America continuing to rely on us for their energy needs. However, our overall Energy segment experienced ongoing challenges on refined fuels margins as the pandemic continues to challenge the energy industry. Throughout the remainder of our fiscal year, we will remain focused on our key priorities including protecting the financial health of CHS, caring for those who depend on us and bringing efficiencies to how we run our businesses and deliver products.”