Farmer-owned cooperative and a global energy, grains and foods company, CHS Inc has reported net income of US$229.3 million for the third quarter of its 2018 fiscal year. This covers the three-month period ending May 31, 2018, and compares to a net loss of US$45.2 million for the same time period a year ago. Results for the quarter were attributed to higher operating margins in the companys Ag and Energy segments compared to previous years, primarily driven by higher margins in feed and farm supplies, crop nutrients, processing & food ingredients and refined fuels.

Consolidated revenues for the third quarter of fiscal 2018 were US$9.0 billion, up from US$8.6 billion for the third quarter of fiscal 2017. Pretax income was US$289.4 million for the third quarter of fiscal 2018, compared to a loss of US$209.2 million for the same period in the prior fiscal year.

“Thanks to the hard work of many throughout CHS, weve made great strides this year in strengthening relationships, optimizing operations and improving results from our core businesses,” said CHS President and CEO Jay Debertin.

“The steps weve taken will better position us to navigate the inevitable cycles in agriculture and energy. I am proud of our team and their dedication and commitment to operating with excellence.”

For the first nine months of fiscal 2018 (Sept 1, 2017, through May 31, 2018), CHS reported net income of US$576.1 million compared with earnings of US$178.5 million for the same period in fiscal 2017. Revenues for the first nine months of fiscal 2018 were US$23.9 billion, on par with the same time period the prior fiscal year.

Sales of certain assets and businesses within the Energy segment and Corporate and Other, resulting in cash proceeds that were used to eliminate the need for incremental long-term debt and reduce existing debt.

The impact of reserve and impairment charges recorded in the third quarter of fiscal 2017 that did not reoccur in the current fiscal year, as well as the recovery of certain reserve and impairment charges during fiscal 2018, primarily in CHS’s Ag segment.

“Were on the right path and the cooperative systems strengths and capabilities were evident during the compressed spring season,” adds Debertin. “We will continue to focus on meeting the needs of farmers and rural communities, leveraging our strong supply chain to help improve profitability for our owners.”

based in Minnesota, CHS owns and operates various food processing and wholesale, farm supply, Cenex brand fuel, financial services and retail businesses and is a co-owner of Ventura Foods, a vegetable oil processor.

The Ag segment, which includes domestic and global grain marketing and crop nutrients, renewable fuels, local retail operations, and processing and food ingredients businesses, generated pretax income of US$111.4 million for the quarter ending May 31, 2018. That compares to a loss of US$221.2 million for the same period the previous fiscal year.

In addition to the non-reoccurrence of significant reserve and impairment charges recorded in the third quarter of fiscal 2017, the US$332.6 million increase was also the result of increased volumes and margins in feed and farm supplies, processing and food ingredients and retail operations.

This increase was partially offset by reduced crop nutrients volumes resulting from the compressed planting season across the US Midwest. Crop nutrient margins were also higher versus prior year.

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