ST. PAUL -- CHS Inc. (Nasdaq: CHSCP), a leading energy, grains and foods company, today reported earnings of $219.5 million for the first half of its 2009 fiscal year.
Net income for the first half of fiscal 2009 (Sept. 1, 2008 - Feb. 28, 2009) compares with $468.9 million for first six months of fiscal 2008. Total revenues for the first two quarters of fiscal 2009 were $12.9 billion and compared with $13.4 billion for the same period of 2008. Revenues for fiscal 2009 reflected lower values for many of the grain, refined fuels and crop nutrients products CHS markets.
Net income for the second quarter of fiscal 2009 (Dec. 1, 2008 - Feb. 28, 2009) was $82.3 mil-lion, compared with $168 million for the second quarter of fiscal 2008. Revenues for the quarter were $5.2 billion, down from $6.9 billion the previous year.
Year-to-date results for fiscal 2009 and for fiscal 2008, also reflected two significant events. During the first quarter of fiscal 2009, CHS recorded within its Processing segment a $70.7 million ($64.4 million net of taxes) impairment on the value of its ownership of VeraSun Energy Corp., an ethanol manufacturer that filed for bankruptcy protection and has since liquidated. During fiscal 2008, CHS recorded a gain of $91.7 million on the company's sale of stock in CF Industries, a crop nutrients manufacturer.
For the first six months of fiscal 2009, improved refining margins and increased propane demand, driven by cold winter weather, contributed to increased Energy earnings. The com-pany's Ag Business segment - consisting of its crop nutrients, grain marketing and country retail operations - reported lower earnings due to reduced global grain demand and lower crop nutrient values. Earnings within the company's Processing segment declined from fis-cal 2008, due in part to lower consumer demand for food and ingredients which impacted CHS joint venture food manufacturing and flour milling operations. The weak economy also contributed to lower earnings for the company's insurance, risk management and financial services businesses.
