CHS reported net income of $125.4 million for the second quarter of fiscal year 2020 that ended Feb. 29, 2020. This compares to net income of $248.8 million in the second quarter of fiscal year 2019.

The company reported revenues of $6.6 billion for the second quarter of fiscal year 2020 compared to revenues of $6.5 billion for the second quarter of fiscal year 2019. In the first six months of fiscal year 2020, CHS reported net income of $303.3 million compared to net income of $596.3 million in the first six months of fiscal year 2019.

"Today our top focus is on our core value of safety—including the health and safety of our employees, farmers, our owners, our customers, our local cooperatives and the communities where we live and work around the world—as we all navigate the impact of COVID-19," said Jay Debertin, president and CEO of CHS Inc. "The investments we've made in our infrastructure connect farmers and local cooperatives to the inputs and services they need during this busy spring season."

Business segment results

The following segment results were reported for the second quarter of fiscal year 2020 as compared to the second quarter of fiscal year 2019.

Energy

Pretax earnings of $138.9 million in the second quarter of fiscal year 2020 compared to $306.6 million for the second quarter of fiscal year 2019 reflect less advantageous market conditions in our refined fuels business that drove lower margins, due to a combination of lower crack spreads and decreased crude oil differentials on heavy Canadian crude oil, which is processed by our refineries.

Ag

Pretax loss of $20.8 million in second quarter of fiscal year 2020 compared to pretax loss of $62.4 million in the second quarter of fiscal year 2019 reflects:

Nitrogen production

Pretax earnings of $5.7 million in the second quarter of fiscal year 2020 compared to pretax earnings of $10.7 million in the second quarter of fiscal year 2019 reflect lower equity income from our investment in CF Nitrogen due to decreased market pricing of urea and urea ammonium nitrate, which are produced and sold by CF Nitrogen, of which CHS has partial ownership.

Corporate and Other

Pretax earnings of $4 million in the second quarter of fiscal year 2020 compared to pretax earnings of $7 million in the second quarter of fiscal year 2019 reflect decreased income from our financing and hedging business due to lower interest rates and lower commissions, respectively.

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.