CHS Inc.’s first fiscal quarter for 2019 ended Nov. 30, 2018. Here are some highlights from the company’s financial release on the quarter:
- Net income of $347.1 million for the first quarter of fiscal 2019, which is an increase of $159.9 million from the restated first quarter of fiscal 2018.
- Improved crude oil pricing, which drove higher refining margins
- Favorable market conditions in the crop nutrients business, which resulted in higher margins
- Improved earnings in the company's CF Nitrogen, Ardent Mills and Ventura Foods investments
Confirmed in the release was CHS’s intent to acquire the remaining 75% of West Central Distribution. The two companies first partnered in late 2017 when CHS bought a 25% stake in the ag retail distribution company. Now, CHS will be in the process of completing due diligence and meeting the regulatory and legal requirements for the complete acquisition. West Central Distribution was founded in 1974 and is based in Willmar, MN. Since the first stage agreement in October 2017, CHS Country Operations Service Centers have had access to both private-label products marketed under the CHS brand along with West Central's current branded products.
"Our strong first quarter results position us well as we start our 2019 fiscal year," Jay Debertin, CHS president and chief executive officer said in a press release. "We are focused on making CHS our customers' first choice by advancing our technology solutions and equipping employees to meet the changing needs of our customers around the world. We will do this while maintaining financial discipline and rigor."