Wed, Jul 10, 3:32 PM (253 days ago)
CHS Inc. reported a decline in both revenue and net income for the quarter ended May 31, 2024, compared to the same period last year. Revenues decreased to $9.6 billion from $12.0 billion, and net income dropped to $297 million from $547 million. The Energy segment saw a significant reduction in income before income taxes (IBIT) due to lower crack spreads and decreased WCS crude oil discounts. The Ag segment also experienced a decline in IBIT, primarily due to weaker grain and oilseed demand and lower margins in oilseed processing and agronomy products. Equity income from investments decreased, notably from Ventura Foods, due to less favorable market conditions. Cash flow from operating activities significantly decreased to $160 million from $1.97 billion, largely due to increased receivables and inventories. The company anticipates continued margin pressures in both the Energy and Ag segments due to ongoing global economic uncertainties.