Farmer-owned cooperative CHS has reported net income of $235.5 million for the first six months of its 2016 fiscal year, reflecting a 50 percent decline from net income of $471.5 million for the first six months of fiscal 2015
Farmer-owned cooperative CHS has reported net income of $235.5 million for the first six months of its 2016 fiscal year, reflecting a 50 percent decline from net income of $471.5 million for the first six months of fiscal 2015. The lower earnings were attributed to the down economic cycles in the agricultural and energy sectors, which have resulted in reduced commodity prices and lower margins globally. These have combined to significantly reduce CHS profitability. Revenues through Feb. 29, 2016, were $14.4 billion, down nearly 20% from $17.9 billion for first half of fiscal 2015, and primarily reflected lower selling prices for the energy, grain and fertilizer products the company handles."Like others in our energy and agricultural space, CHS is experiencing the earnings impact of depressed global prices and reduced demand for refined fuels, grain and fertilizer," said CHS President and Chief Executive Officer Carl Casale. "We've experienced these types of cycles throughout our more than 85-year history and will navigate this period by finding ways to run our businesses more efficiently and effectively while continuing to serve our owners' and customers' needs."For the second quarter of fiscal 2016 (Dec. 1, 2015 through Feb. 29, 2016), CHS reported a net loss of $31.0 million compared with earnings of $92.8 million for the same period in fiscal 2015. Results for the quarter also were attributed to the current down cycle in the company's agricultural and energy businesses. Revenues for the second quarter of fiscal 2016 were $6.7 billion, down 20 percent compared with $8.4 billion for the second quarter of fiscal 2015.