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, 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.
