CHS reported net income of $69.7 million for the first quarter of fiscal year 2021, compared to net income of $177.9 million in the first quarter of fiscal year 2020.
The results for the first quarter of fiscal year 2021, which ended Nov. 30, 2020, reflect:
- Revenues of $8.7 billion compared to revenues of $7.6 billion for the first quarter of fiscal year 2020.
- Low crack spreads and other unfavorable market conditions in the refined fuels business, driven primarily by the COVID-19 pandemic, which resulted in volume and price declines that reduced earnings in the Energy segment compared to the same period of the prior year.
- Decreased propane demand that resulted from warmer and drier fall weather during the first quarter of fiscal 2021 compared to the same period of the prior year.
- Improved relations between the United States and foreign trading partners that drove increased volumes and margins for grain and oilseed.
- Favorable weather conditions during fall harvest compared to the prior year that drove increased volumes and margins across much of the ag segment.
"Improved trade opportunities with China and improved trade activity in Europe and Africa helped drive first quarter improvement in our global grain business," said Jay Debertin, president and CEO of CHS Inc. "Our animal nutrition volumes also saw growth in the first quarter of fiscal year 2021. We saw year-over-year increases in premium diesel sales with rural America continuing to rely on us for their energy needs. However, our overall Energy segment experienced ongoing challenges on refined fuels margins as the pandemic continues to challenge the energy industry."