Warm winter weather hurt demand for propane and other fuels, which Minnesota-based CHS sells in abundance. As a result, the cooperative saw quarterly profits fall 41% compared to a record-setting quarter last year, while revenue was down 19%.
CHS earnings dinged by warm winter
The Minnesota-based ag co-op saw much-improved results in grain and oilseeds.
The Minnesota Star Tribune
April 3, 2024 at 4:15PM
CHS, which makes and markets propane, gasoline and diesel, saw energy profits decline 76%, to $51 million, for the fiscal quarter that ended in February.
Grain and oilseed sales and profits improved markedly, however, on “improved efficiencies and a more balanced global supply and demand environment,” the co-op said Wednesday. The better market conditions led to a 170% jump in ag earnings.
“The first six months of our fiscal year have delivered overall good financial results,” said Jay Debertin, president and CEO of CHS, in a statement. “Our supply chain investments and well-diversified portfolio, empowered by our people and technology, are helping us perform well as we connect farmers and local cooperatives with the inputs and services they need to help feed the world.”
CHS profits reached $170 million in its second fiscal quarter on $9.3 billion in revenue.
Passenger volume at Rochester International Airport is down nearly 50% since the start of the pandemic as travelers migrate to MSP for cheaper flights without layovers.
