Posts By: Meghan Hinnenkamp

CHS Reports $347 million first quarter fiscal 2019 net income

CHS Inc. has reported a net income of $347.1 million for the first quarter of fiscal 2019. “Our strong first quarter results position us well as we start our 2019 fiscal year,” said Jay Debertin, CHS president and chief executive officer. “We are focused on making CHS our customers’ first choice by advancing our technology solutions and equipping employees to meet the changing needs of our customers around the world. We will do this while maintaining financial discipline and rigor.”

Key financial highlights for the quarter that ended Nov. 30, 2018, include:

  • Net income of $347.1 million, an increase of $159.9 million from the restated first quarter of fiscal 2018.
  • Consolidated revenues of $8.5 billion, a $452.4 million increase from the restated first period of fiscal 2018.
  • Pretax income of $367.2 million, an increase of $159.4 million from the restated first period of fiscal 2018.
  • Improved crude oil pricing, which drove higher refining margins.
  • Favorable market conditions in the crop nutrients business, which resulted in higher margins.
  • Improved earnings in the company’s CF Nitrogen, Ardent Mills and Ventura Foods investments.

First Quarter Fiscal 2019 Segment Results

The following segment results were reported for the first quarter of fiscal 2019 as compared to first quarter fiscal 2018.

ENERGY

The $112.0 million increase in Energy pretax earnings reflects the following:

  • Improved market conditions in the refined fuels business driven by favorable crude oil pricing.

AG

The $5.1 million increase in Ag pretax earnings was driven by the following:

  • Improved pricing within the company’s crop nutrients and processing and food ingredients businesses and volume increases within grain and processing.

NITROGEN PRODUCTION

The $18.0 million increase in Nitrogen Production pretax earnings reflects the following:

  • Improved margins within the Nitrogen Production business driven by increased sales prices of urea and UAN, which are produced and sold by CF Nitrogen.

CORPORATE AND OTHER

The $24.3 million increase in Corporate and Other pretax earnings reflects the following:

  • Higher earnings from the company’s investments in Ventura Foods, LLC and Ardent Mills, LLC as well as increased interest revenue from the company’s financing business.

In late December 2018, CHS, a 25 percent owner of West Central Distribution, exercised its option to purchase the remaining 75 percent of the respected crop protection distribution company and is in the process of completing due diligence and satisfying regulatory, legal and other requirements.

Read the full press release online here.

WIN (What I Need) Academy Awarded Grant from CHS Prairie Lakes


Lisa Menninger, Special Education Teacher and Amy Perreault, Community Funds Coordinator

Starbuck, Minn.  WIN Academy was awarded an Elementary and Secondary Grant totaling $355 from CHS Prairie Lakes, as a part of the Prairie Lakes Grant Program.

CHS Prairie Lakes selected Lisa Menninger to receive a grant of $230 to incorporate a Water Works and Water Quality Test kits into her classroom. Lisa also received a grant of $125 to assist in bringing in the Minnesota Science Museum to her school to help teach students how essential water is for life on earth, how water cycles around our planet and how water is a limited supply.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

Long Prairie-Grey Eagle Elementary Thunder Dash Awarded Grant from CHS Prairie Lakes

Starbuck, Minn.  Long Prairie-Grey Eagle Elementary was awarded a $500 Elementary and Secondary Grant from CHS Prairie Lakes, as a part of the Prairie Lakes Grant Program.

CHS Prairie Lakes selected Katie Lieser to receive a grant of $250 to support the school’s color run. Katie is a teacher and a member of the Thunder Dash Committee. The school took a BOLD take on fundraising this year. Instead of having students sell food items and gifts, LPGE chose to host a Color Run. The money raised at the Thunder Dash Color Run is utilized for field trips and other educational activities.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

Glacial Hills Elementary Awarded Grant from CHS Prairie Lakes

Vanessa Larson, Special Education Teacher & Amy Perreault, Community Funds Coordinator

Starbuck, Minn.  Glacial Hills Elementary was awarded a $250 Elementary and Secondary Grant from CHS Prairie Lakes, as a part of the Prairie Lakes Grant Program.

CHS Prairie Lakes selected Vanessa Larson, a special education teacher, to receive a $250 grant to purchase programs that help to enhance the school’s resources for early reading, phonics, number awareness and letter awareness as well as early reader books for students.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

BBE Elementary Awarded Grant from CHS Prairie Lakes


Photo: F. Alaya, Alex, Matthew, Harper, Malley, Jack, Brayden, Isaiah, Lydia. Back Row: Hailey, Nathan, Rae, Landon, Byron, Jude, Emma, Malia, Kynli, Liam. Very Back Row: Mrs. Bents (first grade teacher), Amy Perreault (Community Funds Coordinator).

Starbuck, Minn. BBE Elementary’s First Grade Class was awarded a $125 Elementary and Secondary Grant from CHS Prairie Lakes, as a part of the Prairie Lakes Grant Program.

CHS Prairie Lakes selected Kristine Bents, a first grade teacher, to receive a $125 grant to purchase agricultural children’s books for her classroom. Mrs. Bents purchased the books to help encourage the little farmers to love reading as much as they love to help their parents on the farm outside of school.

Applying schools and local community organizations are asked to state their plans for the grant money, supply general information about the project and purpose of the request, along with specific financial needs and projected outcomes. Applications for grant funding are available online at www.chsprairielakes.com.

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Elrosa, Glenwood, Hoffman, Long Prairie, Lowry, Park Rapids, and Starbuck, CHS Prairie Lakes is here to supply for your needs. For more on what’s new and to learn about other ways CHS Prairie Lakes gives back, visit us at www.chsprairielakes.com, like us on Facebook, and follow us on Twitter.

CHS Foundation Announces $1.5 Million Gift to Support SDSU Precision Agriculture Program

 

Photo from left to right: CAFES Dean John Killefer, CHS Board of Director Tracy Jones, CHS Board of Director Randy Knecht, CHS Foundation President Nanci Lilja, SDSU President Barry Dunn, Jerome J. Lohr College of Engineering Dean Bruce Berdanier, CHS Board of Director Dave Kayser, and CHS Region Vice President Ed Mallett.

 

The CHS Foundation, funded by charitable gifts from CHS Inc., announced a $1.5 million grant to support the South Dakota State University (SDSU) precision agriculture program and construction of the new Raven Precision Agriculture Center on campus.

“The gift from the CHS Foundation is pivotal in allowing us to make our globally preeminent precision agriculture program a reality,” says John Killefer, the South Dakota Corn Utilization Council Endowed Dean of the SDSU College of Agriculture, Food and Environmental Sciences.

The gift aligns with CHS priorities around ensuring that educating the next generation of ag leadership includes technology and tradition.

“The CHS Foundation is committed to supporting projects that cultivate opportunity for students interested in the agriculture industry,” says Nanci Lilja, president, CHS Foundation. “By supporting the precision ag program at SDSU, there will be more qualified graduates entering the agriculture industry.”

SDSU is the nation’s first land-grant university to offer a bachelor’s degree and minor in precision agriculture. The degree is a collaborative effort encompassing the Agricultural and Biosystems Engineering Department and the Agronomy, Horticulture and Plant Science Department in the College of Agriculture, Food and Environmental Sciences, as well as the Jerome J. Lohr College of Engineering.

SDSU’s precision agriculture degree will provide students with access to cutting-edge developments in the rapidly evolving intersection of agronomics, high-speed sensor technology, data management and advanced machinery development. Students will be prepared for lifelong careers that support economically and environmentally sustainable agriculture.

This facility will allow the state to lead the nation in precision agriculture research, teaching and innovation.

“The gift in support of the Raven Precision Agriculture Center will positively impact our students and industry for decades to come,” says Killefer. “This commitment from the CHS Foundation illustrates the leadership role and vision they have within the agricultural industry.”

The building has 129,000 square feet of floor space that will be able to house modern precision farm equipment and will provide collaborative learning spaces for student design projects. Flexible space will give scientists from a variety of departments and industry space to collaborate on research and education.

“Precision agriculture technology is ever-changing,” says Lilja. “It’s exciting to envision the impact students will have by developing new technologies through collaboration with their peers and industry leaders in this new environment.”

Final construction plans are in-progress. Some ground work is expected to begin this fall, with construction starting in the spring of 2019.

About the CHS Foundation

The CHS Foundation, funded by charitable gifts from CHS Inc., is focused on developing a new generation of agriculture leaders for life-long success. Together, with our partners, we are igniting innovation and driving excellence in agriculture education, cultivating high-impact programs for rural youth and accelerating potential for careers in agriculture. Learn more at http://chsfoundation.org.

About South Dakota State University
Founded in 1881, South Dakota State University is the state’s Morrill Act land-grant institution as well as its largest, most comprehensive school of higher education. SDSU confers degrees from seven different colleges representing more than 200 majors, minors and specializations. The institution also offers 36 master’s degree programs, 15 Ph.D. and two professional programs.

The work of the university is carried out on a residential campus in Brookings, at sites in Sioux Falls, Pierre and Rapid City, and through Extension offices and Agricultural Experiment Station research sites across the state.

 

 

Cenex® Gift Cards for Gallons Starts November 1

Starting November 1, 2018, through February 28, 2019, you can earn one $50 VISA® gift card for every 125 gallons of lubricant and grease products purchased.

Eligible lubricant products include:

  • Maxtron® DEO
  • Maxtron® Enviro-EDGE®
  • Maxtron® GL
  • Maxtron® THF+
  • MP Gear Lube
  • Qwiklift® HTB®
  • Superlube 518®
  • Superlube TMS®

Eligible grease products include:

  • HD Moly Xtreme
  • Poly-Xtreme®
  • Maxtron® EP
  • Blue Gard® 500+™
  • Fluid Gear Grease
  • Molyplex 500+
  • ML 365®
  • Red Protect XT®
  • Maxtron® FS

 

Getting your reward is easy:

  • Complete a Gift Cards for Gallons Redemption Form (you can obtain this from your local CHS energy team), attach the qualifying sales receipt(s) or invoices, and submit by mail no later than April 6, 2019.   Contact our office with any questions!

September 19, 2018 Grain Update

By Tim Guza, Grain Manager

 

Averaging Contracts
At CHS Prairie Lakes, we will be offering three averaging contracts this year – one for March 19 futures, one for July 19 futures, and a third for December 19 futures.  Contracts will be sold on Wednesdays throughout the trading period and at the end of the trading period, you will receive the average of the weekly sales.  The best part? You can price out of the contract if the market rallies!  Contact our grain procurement team for more details on these contracts.

Soybeans DP
Our current DP rate for soybeans is 24 cent minimum, which will get us to January 1st; after that, it will be 6 cents per month.

Harvest Update
Soybeans have started being harvested in our area and so far, everyone seems pleased with their yields.  We’ve set up a text messaging list to share updates to harvest hours once things get moving pretty heavily in the fields; if you’d like to be added to this list, let a member of our team know (we’ll need to know your cell phone number and cell provider).  Wishing everyone a safe harvest!

 

This material has been prepared by a sales or trading employee or agent of CHS Hedging, LLC. and should be considered a solicitation.  This communication may contain privileged and/or confidential information and is intended only for the use of the individual or entity to which it is addressed.  If the reader of this message is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited.  CHS Hedging, LLC. makes no representation or warranty regarding the correctness of any information contained herein, or the appropriateness of any transaction for any person.  There is a risk of loss when trading commodity futures and options. 

Grain Market Update, July 17 2018

By Tim Guza, Grain Manager

 

In the last couple of weeks there has been a couple of things that have been going through my mind. The first is how do we utilize our space this fall and the second is what do we think the market is going to do. Let’s start with space, we currently do not have a PNW export market for soybeans. This will keep bean basis week granted if we get the trade war settled this could change. We feel at some time china will need our beans we just don’t know when. Could this year be the year that it makes the most sense to ship corn and bin the beans? In a typical year we can pick up 30 cents to carry corn to the July. This year we could be looking at huge carries in the beans because of lack of outlets and if china comes to buy beans again from the United States they will probably rally. Each operation is different but don’t rely on what we have done in the past.

The second thing is market movement. I was asked to draw a line on sheet of paper on what I thought the market was going to do between now and harvest. My line was flat. If you are looking at having to move old crop in front of harvest or if you have a basis contract ask yourself what you think the market is going to do and price your grain accordingly. We have not had to trade a political driven market like this and the crops look good.

© 2019 CHS Inc.