CHS Inc. owners in Wisconsin are sharing in an unprecedented up to $258 million disbursement as a result of the leading energy and grain-based foods company's record fiscal 2006 earnings. It marks the third consecutive record return to owners by CHS and is the largest ever made by a U.S. cooperative.
The distribution was made to nearly 450 member cooperatives and individuals in Wisconsin.
The distribution underway is part of a total $258 million being distributed in 48 states. It includes cash patronage, equity redemption and CHS preferred stock issued as equity redemption. Patronage refunds also include a record 14.8 cents-per-gallon paid to eligible customers who purchased gasoline, diesel and other refined fuels from CHS during its fiscal 2006, a total of $99 million in cash on refined fuels purchases. CHS is the nation's largest member-owned energy company.
"This record return represents one of the most important ways we can deliver on our CHS mission of adding value for all of our stakeholders," said Michael Toelle, CHS board chairman. "The strong performance the company achieved during fiscal 2006 has enabled CHS to continue to grow, to be financially sound and to provide a return on our owners' investment in diverse businesses ranging from energy to grain marketing to food processing."
CHS net income for its fiscal year ending Aug. 31, 2006, was $490.3 million.
During 2007, distributions are being made to 1,325 member companies and more than 37,000 individuals. Patronage is based on business done with CHS during fiscal 2006, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years.
CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives. A Fortune 500 company, CHS is owned by farmers, ranchers and cooperatives from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas, along with thousands of preferred stockholders. CHS provides products and services ranging from grain marketing to food processing to meet the needs of customers around the world. It also operates petroleum refineries/pipelines and, through a broad range of working partnerships, markets and distributes Cenex brand energy products and renewable fuels, along with agronomic inputs and livestock feed to rural America.