Lower margins in its energy and agriculture businesses stung CHS Inc. in the first quarter of its fiscal year.
The nation's largest farmer-owned cooperative reported net income of $266.5 million for the three months ended Nov. 30, about 30 percent less than for the same period a year before.
Revenue was $7.7 billion, down from $9.5 billion for the same period in fiscal 2015.
Company executives attributed the changes to lower selling prices for the energy and grain products that make up a significant portion of CHS business.
Some of the largest decreases in earnings were in the CHS ag segment, which declined 50 percent compared with a year ago.
The segment includes domestic and global grain and crop nutrients businesses, renewable fuels, local retail operations and processing and food ingredients. Officials cited lower logistic performance and margins within the CHS grain marketing business, along with decreased grain volumes and margins for the company's country elevator locations.
Earnings in the company's energy segment were down 31 percent compared with a year ago, driven largely by smaller refining margins and declines in CHS lubricants and transportation businesses. The company reported that increased propane earnings helped to partly offset those losses.
Earnings increased for the quarter in the CHS share of food manufacturer and distributor Ventura Foods LLC, but declined for its share of earnings from the Ardent Mills wheat milling joint venture.