CHS reports 'record' 2007 profits
year, on the back of a good performance throughout all segments of
The company, which claims to be the third largest US grains company, recorded net income for the year ended August 31 2007 of $750m, compared to $490m last year. Revenues for the year were $17bn, up 20 percent over $14bn for fiscal 2006. Fourth quarter revenues stood at $5bn, compared to $4bn the previous year. "The 2007 results mark the fourth consecutive year of record earnings for the producer-owned cooperative and reflected strong performance by every CHS operating unit," said the firm in a statement yesterday. CHS is a producer-owned cooperative, bringing together producers, refiners and processors of grains and grain products. As well as its food ingredients operations, the company also has finished foods and energy businesses. This year's strong results were driven by the firm's energy segment, but CHS also posted strong results in its Ag Business - which includes agronomy, grain marketing and retail operations - and its Processing operations. The company said earnings from its Processing segment were $54m, compared to $29m last year. A main driver for growth was the firm's oilseed crushing business. CHS also reported improved earnings from its share of the Horizon Milling wheat milling venture, which it owns jointly with Cargill. Earlier this month, CHS announced the expansion of its jointly-owned Brazilian agricultural commodity business, Multigrain. In July this year it also expanded its European presence, with the launch of a new grain marketing office in Geneva. CHS exports around 60 percent of the 1.2bn bushels of grain it handles annually, and expanding its operations abroad allows it to more efficiently cater for this demand. The firm sources its US grains and oilseeds including soybeans, corn, wheat and barley, as well as soybeans from its Brazilian operations. The firm's six-month results, announced in April this year, revealed a 'record' profit of $218m, following strong growth in its grain and food processing segments. Between 1 September and 28 February, net income within the company's grain and processing segments rose to $30m and $42m respectively, compared to $17.5m and $17.2m over the same period in 2006.