Related Searches: Tea Vitamin Nutrients Ingredients paper cup packing

Food & Health Ingredients
Health & Nutrition
Processing & Packaging
Starch & Starch Derivatives

CHS Experiencing Down Cycle and Earnings Decline

Food Ingredients First 2017-01-16
Share       
Tag: decline CHS

Farmer-owned cooperative and global energy grains and foods company CHS has reported a 22 percent decline in earnings for September to November 2016 compared with the previous year - but a net income of US$209.2 million for the first quarter of fiscal 2017.

The decline for the last period of 2016 is down to lower pretax earnings in CHS’s energy and foods segments, however they were partially offset by increased pretax earnings in the CHS Ag segment and from the company’s new nitrogen production segment. 

CEO Carl Casale acknowledges the down cycle of CHS but says it’s all part and parcel of business. 

"Weve been in business for nearly nine decades, so weve experienced these types of cycles before," he said. "Although its not possible to predict how long the current down cycle in the ag and energy industries will continue, well navigate through this period by continuing to run our businesses efficiently and effectively, by maintaining a strong balance sheet and by ensuring we serve our owners and customers needs in all we do.”

The CHS Ag segment, which includes its domestic and global grain and crop nutrients businesses, renewable fuels, local retail operations and processing and food ingredients, generated income of US$109.2 million, an increase of 58 percent over the same period a year ago. 

There were increased margins in grains and the wholesale crop nutrients business, but CHS’s processing and food ingredients businesses experienced decreased earnings because of lower margins in the domestic soybean crushing business as well as the sale of an international location. Although these were partially offset by higher margins in the canola crushing and soybean refining businesses.

The Foods segment generated pretax earnings of US$10.6 million during the first quarter of 2017, a decrease of $7.7 million compared to the same period the year before. This segment consists solely of CHS’s equity investment in Ventura Foods, LLC, manufacturer of dressings, sauces, mayos, oils, shortenings, margarines, bases and pan coatings. 

Corporate and other generated pretax earnings of US$8.8 million during the first quarter of fiscal 2017, compared to US$9.4 million during the same time period the previous year. This segment primarily represents the companys equity investment in the Ardent Mills, LLC wheat milling joint venture and Business Solutions operations. 

E-newsletter

Subscribe to our e-newsletter for the latest food ingredients news and trends.

Tags

Recommended Products

Yamato CSJ Checkweigher

Yamato CSJ Checkweigher

Cassava starch processing line

Cassava starch processing line

Lactocbacillus Gasseri LG23

Lactocbacillus Gasseri LG23

Chloroquine Phosphate

Chloroquine Phosphate

DHSY and DRSY separators for biodiesel

DHSY and DRSY separators for biodiesel

Calcium Citrate Malate

Calcium Citrate Malate

Co-joint™ Chondroitin Sulfate

Co-joint™ Chondroitin Sulfate

Top

SJGLE B2B Website : 中文版 | ChineseCustomer Service: 86-400 610 1188-3 ( Mon-Fri 9: 00-18: 00 BJT)

About Us|Contact Us|Privacy Policy|Intellectual Property Statement

Copyright 2006-2023 Shanghai Sinoexpo Informa Markets International Exhibition Co Ltd (All Rights Reserved). ICP 05034851-121