About CHS Inc.

CHS goes with the grain. The company is a leading publicly traded cooperative marketer of grain, oilseed, and energy resources in the US. It represents farmers, ranchers, and co-ops from the Great Lakes to Texas. CHS trades grain and sells farm supplies through its stores to members. The group processes soybeans for use in food and animal feeds and grinds wheat into flour. Through joint ventures and a variety of business segments, it sells soybean oil and crop nutrient products and markets grain. CHS also provides insurance, financial, and risk-management services and operates petroleum refineries to sell Cenex-brand fuels, lubricants, and other energy products.

Operations

CHS operates through four segments -- Energy, Ag, Nitrogen Production, and Foods.

The Ag segment accounts for some 80% of sales consists of grain marketing, country operations, crop nutrients, processing and food ingredients, renewable fuels. The grain marketing business buys up grain from producers and ships it from export and river terminals across the US to specified locations. The country operations business purchases grain through 482 locations throughout the midwestern and western US and Canada; it sells energy, feed, and seed products to the same producers. Crop nutrients delivers products from 21 inland river warehouse terminals to customers directly. Processing and food ingredients crushes around 127 million bushels of oilseeds into 2.8 million short tons of meal/flour and 1.6 billion lbs of edible oil each year; it also processes soyflour for use in the snack industry. Renewable fuels produces 260 million gallons of fuel-grade ethanol and 700 tons of dried distillers grains with solubles annually; it also markets ethanol and dried distillers grains for third-party production plants.

The Energy segment generates more than 20% of sales and sells refined petroleum products through retail and wholesale channels. Products include petroleum, lubricants, and propane and other natural gas liquids. It has refineries in Laurel, Montana and McPherson, Kansas, and sells products under the Cenex brand through a network of around 1,500 convenience stores.

The Nitrogen Production segment consists solely of the company's equity method investment in CF Nitrogen (and this does not contribute revenue to consolidated sales figures). The investment allows CHS to purchase granular urea and UAN annually from CF Nitrogen to a specified annual quantity.

The Foods segment consists of the company's equity method investment in Ventura Foods, which also does not contribute to revenue figures.

Geographic Reach

CHS serves more than 75,000 producer-owners across 16 US states through more than 60 service centers. Globally, CHS has operations in more than 20 countries in North America (which accounts for more than 75% of sales); South America (5%); Europe, the Middle East and Africa (15%); and the Asia-Pacific region (less than 5%).

Sales and Marketing

CHS makes some 80% of its refined fuel sales to members. The cooperative sells about 1.6 billion gallons of gasoline and about 1.8 billion gallons of diesel fuel each year. Sales are made wholesale to member cooperatives and non-member producers, local cooperatives, elevators, grain dealers, grain processors and crop nutrient retailers and through independent retailers operating Cenex-branded Zip Trip convenience stores.

Ventura Foods sales are 60% in foodservice, while the remainder is split between retail and industrial customers who use edible oils as ingredients in products it manufactures for resale.

Financial Performance

In fiscal 2017 (ended August 31) CHS reversed a recent trend for falling revenue amid low commodity prices. Sales grew 5% to $31.9 billion due to volume increases and higher pricing in both the Ag and Energy segments. The Energy segment grew a substantial $817.7 million due to higher average selling prices and sales volumes in refined fuels and propane. The Ag segment also benefited from higher pricing, growing its grain and oilseed revenue by $1.2 billion, partially offset by a $205.7 million fall in processing and food ingredients revenue and a $54.3 million fall in wholesale crop nutrient sales.

Net income fell for the third consecutive year, down 70% to $127.2 million. The fall was almost entirely a result of a series of impairment charges worth $441.3 million. Most costly was the bankruptcy of a Brazilian partner, resulting in charges of $229.4 million; it also took a $110.6 million hit on long-lived asset impairments in the Ag segment; as well as more than $100 million in other impairments.

Cash from operations fell 27% to $933.0 million due to increases in inventory from higher commodity prices and volumes on hand, as well as lower net income.

Strategy

CHS is building a nitrogen fertilizer plant in North Dakota for around $2.8 billion in a strategic venture with CF Industries. The facility is expected to be operational by 2018 and will produce more than 2,400 tons of ammonia daily; the ammonia will be further converted to urea, urea ammonia nitrate, and diesel exhaust fuel. It has a purchase agreement with CF Nitrogen to buy 1.1 million tons of granular urea and 580,000 tons of urea ammonium nitrate each year.

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CHS Inc.

5500 Cenex Dr
Inver Grove Heights, MN 55077-1721
Phone: 1 (651) 355-6000
Fax: 1 (651) 528-6728

Stats

  • Employer Type: Public
  • Stock Symbol: CHSCP
  • Stock Exchange: NASDAQ
  • First Vice Chairman: Clinton J. Blew
  • Second Vice Chairman: Jon Erickson
  • Chairman: Daniel Schurr
  • 2017 Employees: 11,626

Major Office Locations

  • Inver Grove Heights, MN

Other Locations

  • Burlington, CO
  • Denver, CO
  • Holyoke, CO
  • Idalia, CO
  • Sterling, CO
  • Coral Springs, FL
  • Lauderdale Lakes, FL
  • Council Bluffs, IA
  • Davenport, IA
  • Blackfoot, ID
  • Cottonwood, ID
  • Craigmont, ID
  • Grangeville, ID
  • Kendrick, ID
  • Lewiston, ID
  • Nezperce, ID
  • Post Falls, ID
  • Worley, ID
  • Carrollton, IL
  • Gurnee, IL
  • Pekin, IL
  • Brownsburg, IN
  • Blue Rapids, KS
  • Brewster, KS
  • Chase, KS
  • Colby, KS
  • Great Bend, KS
  • Hill City, KS
  • Hutchinson, KS
  • Mcpherson, KS
  • Ness City, KS
  • Oberlin, KS
  • Phillipsburg, KS
  • Quinter, KS
  • Selden, KS
  • Sharon Springs, KS
  • Wichita, KS
  • Melbourne, KY
  • Alexandria, LA
  • Belle Chasse, LA
  • Hamilton, MI
  • Holland, MI
  • Traverse City, MI
  • Badger, MN
  • Bellingham, MN
  • Brownsdale, MN
  • Byron, MN
  • Callaway, MN
  • Chatfield, MN
  • Clara City, MN
  • Claremont, MN
  • Crookston, MN
  • Donnelly, MN
  • Eagan, MN
  • Elrosa, MN
  • Fairmont, MN
  • Fergus Falls, MN
  • Glyndon, MN
  • Grand Meadow, MN
  • Greenbush, MN
  • Grygla, MN
  • Hallock, MN
  • Herman, MN
  • Hoffman, MN
  • Kasson, MN
  • Kennedy, MN
  • Luverne, MN
  • Mahnomen, MN
  • Mankato, MN
  • Marshall, MN
  • Mazeppa, MN
  • Morris, MN
  • Oklee, MN
  • Park Rapids, MN
  • Plainview, MN
  • Rochester, MN
  • Roseau, MN
  • Rosemount, MN
  • Russell, MN
  • Ruthton, MN
  • Saint Charles, MN
  • Saint Hilaire, MN
  • Saint Paul, MN
  • Savage, MN
  • South Saint Paul, MN
  • Stephen, MN
  • Thief River Falls, MN
  • Tracy, MN
  • Twin Valley, MN
  • Warren, MN
  • Wendell, MN
  • Winger, MN
  • Winona, MN
  • Kansas City, MO
  • Greenville, MS
  • Mount Olive, MS
  • Vaiden, MS
  • Big Sandy, MT
  • Billings, MT
  • Broadview, MT
  • Brockton, MT
  • Chester, MT
  • Chinook, MT
  • Columbus, MT
  • Conrad, MT
  • Cut Bank, MT
  • Denton, MT
  • Drummond, MT
  • Fort Benton, MT
  • Geraldine, MT
  • Glasgow, MT
  • Glendive, MT
  • Great Falls, MT
  • Hardin, MT
  • Havre, MT
  • Kalispell, MT
  • Kevin, MT
  • Laurel, MT
  • Lewistown, MT
  • Livingston, MT
  • Malta, MT
  • Miles City, MT
  • Missoula, MT
  • Moccasin, MT
  • Richey, MT
  • Ronan, MT
  • Rudyard, MT
  • Shelby, MT
  • Sidney, MT
  • Stevensville, MT
  • Thompson Falls, MT
  • Three Forks, MT
  • Valier, MT
  • Winifred, MT
  • Adams, ND
  • Aneta, ND
  • Ashley, ND
  • Belfield, ND
  • Bottineau, ND
  • Bowbells, ND
  • Calvin, ND
  • Casselton, ND
  • Coteau, ND
  • Courtenay, ND
  • Devils Lake, ND
  • Dickinson, ND
  • Drayton, ND
  • Edgeley, ND
  • Edmore, ND
  • Englevale, ND
  • Fargo, ND
  • Galchutt, ND
  • Gladstone, ND
  • Glasston, ND
  • Grand Forks, ND
  • Hampden, ND
  • Harwood, ND
  • Hensel, ND
  • Hettinger, ND
  • Horace, ND
  • Kenmare, ND
  • Kulm, ND
  • Lakota, ND
  • Lamoure, ND
  • Langdon, ND
  • Lankin, ND
  • Lansford, ND
  • Larimore, ND
  • Lidgerwood, ND
  • Lignite, ND
  • Litchville, ND
  • Mandan, ND
  • Mantador, ND
  • Milnor, ND
  • Milton, ND
  • Minot, ND
  • Mohall, ND
  • Neche, ND
  • New England, ND
  • Norma, ND
  • Pembina, ND
  • Pisek, ND
  • Reeder, ND
  • Regent, ND
  • Rugby, ND
  • Ryder, ND
  • Sarles, ND
  • Starkweather, ND
  • Taylor, ND
  • Valley City, ND
  • Velva, ND
  • Wyndmere, ND
  • Alma, NE
  • Bertrand, NE
  • Bladen, NE
  • Blue Hill, NE
  • Elm Creek, NE
  • Holdrege, NE
  • Lincoln, NE
  • Loomis, NE
  • Norfolk, NE
  • South Sioux City, NE
  • Tecumseh, NE
  • Wausa, NE
  • Manlius, NY
  • Kenton, OH
  • Kingfisher, OK
  • Omega, OK
  • Harrisburg, OR
  • Island City, OR
  • Portland, OR
  • Tillamook, OR
  • Brookings, SD
  • Claire City, SD
  • Corsica, SD
  • Corson, SD
  • Dupree, SD
  • Eureka, SD
  • Faith, SD
  • Gettysburg, SD
  • Huron, SD
  • Lemmon, SD
  • Selby, SD
  • Sioux Falls, SD
  • Watertown, SD
  • Winner, SD
  • Amarillo, TX
  • Anton, TX
  • Friona, TX
  • Hereford, TX
  • Lubbock, TX
  • Muleshoe, TX
  • Plainview, TX
  • Richmond, TX
  • Ropesville, TX
  • Westminster Station, VT
  • Auburn, WA
  • Black Diamond, WA
  • Chimacum, WA
  • Everson, WA
  • Fairfield, WA
  • Gig Harbor, WA
  • Kennewick, WA
  • Lynden, WA
  • Mead, WA
  • Moses Lake, WA
  • Nooksack, WA
  • Othello, WA
  • Pasco, WA
  • Poulsbo, WA
  • Quincy, WA
  • Rockford, WA
  • Royal City, WA
  • Saint John, WA
  • Spokane Valley, WA
  • Tacoma, WA
  • Yakima, WA
  • Green Bay, WI
  • Pittsville, WI
  • Superior, WI
  • Beiseker, Canada
  • Burlington, Canada
  • Montréal, Canada
  • Rolling Hills, Canada
  • Saskatoon, Canada
  • Standard, Canada
  • Winnipeg, Canada
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