refining drives chs earnings

Revenues for fiscal year 2007 were $17.2 billion, up 20% over $14.4 billion a year earlier.

CHS Inc., the St. Paul, Minn.-based refiner-marketer, reported record net income for fiscal 2007 of $750.3 million. The earnings for the 12 months ending Aug. 31, 2007, compared with net income of $490.3 million for fiscal 2006. Revenues for fiscal 2007 were $17.2 billion, also a record, and were up 20% over $14.4 billion for fiscal 2006.

Earnings for the fourth quarter of fiscal 2007 were $294 million, compared with $159.3 million for the final quarter of fiscal 2006. Revenues for the quarter were $5 billion, up from $4.0 billion the previous year.

The 2007 results mark the fourth consecutive year of record earnings for the producer-owned cooperative and reflected strong performance by every CHS operating unit. Once again, market-driven refined fuels earnings led overall results largely due to strong margins generated by the two CHS refineries. CHS is the nation’s largest cooperatively owned refiner. Record revenues were attributed to increased renewable fuels volumes, and higher values and volume in grain.

As a producer-owned cooperative, CHS returns a portion of its earnings to eligible owners. In 2007, based on 2006 performance, the company issued a record $253 million in cash patronage, equity redemptions, preferred stock and dividends. Another record cash return is expected during 2008 based on landmark fiscal 2007 results.

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