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FINANCIAL
HIGHLIGHTS
FINANCIAL HIGHLIGHTS
Strong energy earnings, global agricultural expertise
and record local retail operations performance
combined in fiscal 2014 to boost CHS earnings to
the second-highest mark in history. CHS reported
net income of nearly $1.1 billion for the period
Sept. 1, 2013, through Aug. 31, 2014, despite overall
softening of global refined fuels, grains and crop
nutrients markets. Net income for fiscal 2014 was
up 9 percent compared with $992.4 million for
fiscal 2013.
CHS revenues of $42.7 billion for fiscal 2014 declined
4 percent from fiscal 2013 as a result of lower values
for commodities the company handles, including
refined fuels, grain and oilseeds.
Year-over-year earnings for CHS Energy declined
10 percent during fiscal 2014, to $735.7 million from
$816.7 million in fiscal 2013, due to lower refining
margins for much of the year for the company’s
refineries at Laurel, Mont., and McPherson, Kan.
Overall Energy performance, however, included
record performance for other energy segment
businesses, including propane, lubricants, renewable
fuels marketing and transportation.
CHS Ag fiscal 2014 earnings of $209.3 million
reflected a 5 percent increase from $199.3 million
in fiscal 2014. The company’s core competency
in logistics and risk management enabled it to
maximize volumes and earnings for its global grain
marketing and wholesale crop nutrients operations.
Significant crop inputs and services business, plus
strong grain margins, contributed to record earnings
for CHS Country Operations local retail, animal
nutrition and sunflower businesses. CHS recorded
impairments for fiscal 2014 within its Processing and
Food Ingredients business.
27CHS 2014
CHS reports results for its business services
operations and two food processing–related joint
ventures under the Corporate and Other heading.
Overall earnings increased in fiscal 2014 compared
with the previous year. Combined earnings for
CHS insurance, risk management and financing
businesses declined in fiscal 2014 compared with
fiscal 2013, largely due to market volatility and
commodity prices, which aected borrowing and
hedging activity. Earnings contributions to CHS for
fiscal 2014 reached high marks for the company’s
50 percent ownership of Ventura Foods, LLC, a
vegetable-oil-based food manufacturing business,
and its 12 percent share of Ardent Mills, a wheat
milling venture. CHS recorded a $109.2 million
gain associated with the Ardent Mills transaction
in May 2014.
Strong fiscal 2014 net income, which extended
the strongest period of earnings performance in
company history, enabled CHS to deliver on its
threefold financial commitment to its owners:
maintaining a strong balance sheet, continuing to
invest in the future, and returning direct economic
value through ownership and cash returns. CHS
once again ended its fiscal year with strong return
on equity of 21.1 percent.
In fiscal 2014, based on fiscal 2013 earnings,
CHS returned a landmark $637.2 million in cash
patronage, equity redemptions, preferred stock
and dividends on preferred stock to its owners.
This included a one-time retirement of $200 million
in qualified owner equity using preferred stock.
Cash returns generated by earnings for fiscal
years 2010 through 2014 total $2.1 billion.