MINNEAPOLIS, Dec. 5, 2014 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, must capture new opportunities to build on the momentum that has driven its robust growth and strong financial performance, company leaders reported today at its 2014 annual meeting.
"The unprecedented success this company has achieved in recent years has delivered tremendous value for you – in dependable input supplies, market opportunity, economic returns and investments in your future," Carl Casale, CHS president and chief executive officer, told farmer-owners, cooperative leaders and others attending its 2014 Annual Meeting. "CHS remains in motion, on a trajectory for exciting new destinations. But we can never put our future on autopilot. We must constantly recharge our momentum, finding new ways to increase our speed and adjusting our trajectory to stay ahead of competitive forces."
Casale addressed nearly 2,500 member-owners and others attending the CHS Annual Meeting at the Minneapolis Convention Center. The meeting – which carried the theme Momentum – outlined how CHS will achieve its three objectives: investing in future, delivering direct economic value to owners and remaining financially strong for its owners.
CHS Board Chairman David Bielenberg, an Oregon farmer, told the audience "momentum is all about staying power. That's why, as a board, we are 100 percent owner-focused and committed to maintaining a strong, successful company that is your first choice for products, services and marketing, and one that delivers a direct economic return. Not only today, but for many tomorrows."
In recapping company performance, Executive Vice President and Chief Financial Officer Tim Skidmore said CHS delivered outstanding results in fiscal 2014 that included strong earnings and revenues, significant economic returns to its owners and major investments, all supported by the strongest balance sheet in company history.
For fiscal 2014 (Sept. 1, 2013 – Aug. 31, 2014), CHS reported net income of $1.1 billion on revenues of $42.7 billion, each the second best in company history. The company also returned an unprecedented $637.2 million to its owners in cash and preferred stock. Based on fiscal 2014 results, CHS will distribute an estimated $518 million in cash in fiscal 2015, consisting of patronage, equity redemptions and preferred stock dividends.
In addition to company updates, the meeting included a full day of interactive exhibits, nearly four dozen educational sessions and a keynote address from Sheryl Connelly, in-house futurist for Ford Motor Company, on consumer trends that will influence agriculture and energy trends shaping. Among those also attending the meeting were 155 farmers and ranchers from across the U.S. who took part in the CHS New Leaders Forum, a program that builds next generation leaders for agriculture and rural America.
Recent CHS business highlights include:
- Announced in September that the company would proceed with plans to construct a $3 billion fertilizer manufacturing plant at Spiritwood, N.D.
- Initiated $406 million in projects at its Laurel, Mont., refinery to boost efficiency and increase diesel production.
- Issued $1.4 billion in preferred stock on the NASDAQ exchange over the past 18 months; this included retiring previously earned cooperative owner qualified equity with $200 million in preferred stock
- Acquired Terral River Service, securing storage and ensuring fertilizer supply in the Delta region through eight Mississippi River terminals.
- Purchased an ethanol plant at Rochelle, Ill., with 133 million gallons of annual production, adding value for corn producers and accessing strong markets for ethanol and its coproduct, DDGS.
- Completed a $30 million production expansion, along with equipment and food quality process upgrades, at its Creston, Iowa, soybean processing facility.
- Became an owner of a grain export terminal being built at Necochea, Argentina, providing access to growing Asia-Pacific markets.
- Opened four new propane terminals and made other significant investments to ensure secure supply amid the loss of a major regional distribution pipeline.
- Invested in the future of agriculture, cooperatives and rural communities with $10.5 million in contributions from CHS Corporate Citizenship and the CHS Foundation.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal 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® brand refined fuels, lubricants, propane and renewable energy products.
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, 2014, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
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SOURCE CHS Inc.
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