CHS Inc. reported a net loss of $38.2 million in its fiscal second quarter ended Feb. 28, 2021, versus net income of $125.4 million in the same quarter in fiscal 2020.

Significant year-over-year earnings increases in ag and nitrogen production segments and corporate and other businesses were offset primarily by ongoing COVID-19 pandemic-related impacts in energy.

"Improved trade relations between the United States and foreign trade partners combined with our operating efficiency initiatives led to record grain and oilseed volume increases and continued price gains, significantly improving our ag segment earnings over the prior year," said Jay Debertin, president and CEO of CHS Inc. "Additionally, favorable growing conditions and overall strength in agriculture, helped drive demand for crop inputs, including crop nutrients and crop protection products and services.

"Our energy segment, while showing improvement over the previous quarter, continues to experience unfavorable refined fuels market conditions related to the COVID-19 pandemic and exceptionally higher costs for renewable energy credits. These factors resulted in volume and margin declines that significantly reduced earnings compared to the prior year."

Fiscal 2021 second-quarter results reflect:

Six-month look

For the six-month period ending Feb. 28, 2021, CHS reported net income of $31.4 million versus $303.3 million for the same period in fiscal 2020. Revenues for the first six months of fiscal 2021 rose to $17.0 billion, a $2.8 billion, or 19.8%, increase from $14.2 billion in the same period the previous year.

"I am encouraged by the resilience of our employees and their commitment to owners in what continues to be a challenging operating environment," said Debertin. "We are cautiously optimistic about the rollout of COVID-19 vaccines and other progress being made in response to the pandemic in the U.S. and around the world and the potential impact on our domestic and global businesses.

"As we look ahead to the second half of fiscal 2021, we remain committed to protecting the financial health of CHS, adding efficiency throughout our enterprise to benefit owners and customers, and caring for those who depend on us as we continue creating connections to empower agriculture."

Source: CHS Inc., which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.