Agricultural cooperative CHS Inc. on Thursday credited strong oil refinery performance for a 13 percent increase in third-quarter profits, to $405.1 million.
The Inver Grove Heights firm, which had a 5 percent third-quarter revenue increase to $11 billion, said its oil refineries in Montana and Kansas turned in a strong performance, while there were declines in its agricultural business, which includes crop nutrients, grain marketing and retail stores.
Third-quarter energy-related earnings rose 27 percent to $294.7 million, while agriculture earnings dropped 37 percent to $131.9 million. Grain marketing earnings declined due to reductions in U.S. export volumes and lower profit margins, while oilseed processing earnings declined due to the costs of recent acquisitions, the company said.
For the nine months, the company earned $899.7 million, up from $754.8 million a year ago. Revenue was $29.6 billion, up from $26.3 billion.
STEVE ALEXANDER
