CHS Posts Nine-Month Earnings of $284.1 million

ST. PAUL, Minn. (Map) - ST. PAUL, Minn., July 9 /PRNewswire-FirstCall/ -- CHS Inc., a leading energy, grains and foods company, today reported earnings of $284.1 million through the third quarter of fiscal 2009.

Net income for the nine-month period (Sept. 1, 2008 - May 31, 2009) compares with earnings of $657.6 million through the third quarter of fiscal 2008. Revenues through May 21, 2009, were $19.1 billion, down 16 percent from $22.8 billion for the previous year. The revenue decline was attributed to lower prices for the energy, grain and crop nutrients products the company handles which reached record values during fiscal 2008.

For the third quarter (March 1 - May 31, 2009), CHS reported net income of $64.6 million compared with $188.7 million for the third quarter of fiscal 2008. Revenues for the quarter were $6.2 billion compared with $9.3 billion in fiscal 2008.

Earnings for the period were led by the company's Energy segment, with strong performance from its refined fuels and propane businesses. Within the Ag Business segment earnings were primarily impacted by crop nutrients inventory values which fell dramatically in 2009 following record prices in 2008. In addition, wet spring planting weather in some market areas reduced product demand. During fiscal 2008, CHS recorded a gain of $91.7 million on the company's sale of stock in CF Industries, a crop nutrients manufacturer.

CHS Processing segment results reflected reduced oilseed crushing margins, offset by strong earnings from both the company's ownership of Ventura Foods, LLC, a vegetable oil-based food processor and manufacturer, and Horizon Milling, LLC, a flour milling joint venture. During the third quarter, CHS wrote off the remaining $3.6 million of its ownership in ethanol producer VeraSun Corp., bringing the loss recorded on this investment in fiscal 2009 to $74.3 million. This was recorded within the Processing segment. The weak economy also contributed to lower earnings for the company's insurance, risk management and financial services businesses, recorded under Corporate and Other.

CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders across the United States. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex(R) brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2008, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.

CHS Inc. Earnings By segment (in millions $) Three months Nine months ended ended May 31, May 31, May 31, May 31, 2009 2008 2009 2008 Energy $38.8 $12.5 $298.7 $165.7 Ag Business 23.8 179.9 56.5 504.6 Processing 14.2 17.1 (29.3) 65.3 Corporate and Other 1.9 2.8 5.2 11.9 Taxes (14.1) (23.6) (47.0) (89.9) Net Income $64.6 $188.7 $284.1 $657.6