ST. PAUL, MINNESOTA, U.S. — CHS Inc. reported on Jan. 8 net income of $242.2 million for the first quarter of its 2014 fiscal year, a 30% decrease from the $343.7 million reported in the first quarter of 2013.
The decrease was largely attributed to reduced refining margins in the company's energy business. Revenues for the quarter were $11 billion, down slightly from $11.7 billion for the same period in fiscal 2013, primarily due to lower average selling prices for grains and oilseeds the company handles.
Earnings increased for the company's grain marketing business, which achieved strong logistics performance. CHS processing and food ingredients operations experienced an earnings increase compared to the same period the previous year, primarily related to its soybean crushing and refining businesses.
While overall fiscal 2014 first quarter results for the company's Energy segment declined from the same period a year ago, earnings for CHS propane, lubricants and transportation businesses increased. The CHS propane and transportation businesses generated record earnings for the quarter due to a compressed, high-demand harvest season in much of the company's trade area.
Earnings for the company's renewable fuels marketing business declined slightly for the quarter.
Fiscal 2014 first quarter earnings for the CHS Ag segment – which includes domestic and global grain and crop nutrients businesses, local retail operations and processing and food ingredients – increased slightly over the same period a year ago. This was primarily due to higher margins and service income at local retail operations.
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