C Magazine - Winter 2018

C Briefs

2018-02-02 15:08:58

Three directors join CHS Board; Schurr re-elected chair

Directors elected or re-elected to the CHS Board include, left to right, Perry Meyer, New Ulm, Minn.; Edward Malesich, Dillon, Mont.; Scott Cordes, Wanamingo, Minn.; Jon Erickson, Minot, N.D.; Tracy Jones, Kirkland, Ill.; Dan Schurr, LeClaire, Iowa; Russ Kehl, Quincy, Wash.; and C.J. Blew, Castleton, Kan.

Delegates to the 2017 CHS Annual Meeting elected farmers Scott Cordes of Wanamingo, Minn., and Tracy Jones of Kirkland, Ill., to serve three-year terms, and Russ Kehl of Quincy, Wash., to serve a one-year term on the CHS Board of Directors. Re-elected to three-year terms were C.J. Blew, Castleton, Kan.; Jon Erickson, Minot, N.D.; Edward Malesich, Dillon, Mont.; Perry Meyer, New Ulm, Minn.; and Dan Schurr, LeClaire, Iowa.

Cordes succeeds Curt Eischens, Minneota, Minn., who had served on the board since 1990. Cordes operates a 1,000- acre corn and soybean farm and previously was president of CHS Hedging.

Jones succeeds Greg Kruger, Eleva, Wis., a director since 2008. Jones operates a corn, soybean, wheat and beef farm and has been chairman of the CHS Elburn board since 2011.

Kehl fills the final year of a three-year term held by David Bielenberg, who resigned in June 2017. Kehl raises potatoes, dry beans and other crops on a 12,000-acre irrigated farm. He had been a director for CHS Connell Grain, now CHS SunBasin Growers.

During its yearly reorganization session following the annual meeting, CHS Board members re-elected Schurr to a oneyear term as chairman. Other officers for 2018 are Blew, first vice chairman; Erickson, second vice chairman; David Johnsrud, Starbuck, Minn., secretary-treasurer; and Steve Riegel, Ford, Kan., assistant secretary-treasurer.

CHS REPORTS FIRST QUARTER EARNINGS OF $180.1 MILLION

CHS reported net income of $180.1 million for the first quarter of the 2018 fiscal year, which ended Nov. 30, 2017. The results compared with net income of $209.2 million for the same period one year earlier.

Consolidated revenues for the first quarter of fiscal 2018 were $8.0 billion, equal to the same period in fiscal 2017. Pretax income was $199.6 million and $225.6 million for the first quarters of fiscal 2018 and 2017, respectively.

“Despite challenging market conditions, CHS experienced a solid first quarter, thanks to our continued focus on three key priorities: strengthening relationships, sharpening operational excellence and restoring financial flexibility,” said CHS President and CEO Jay Debertin.

“In the first quarter, we recorded solid earnings from our businesses and reduced long-term debt. These actions are helping to strengthen and grow CHS.”

CHS INC. EARNINGS (in millions)

RESTORING FINANCIAL FLEXIBILITY

As CHS focuses on restoring financial flexibility, a key component is optimizing the cooperative’s assets. This focus is ongoing and includes identifying assets that are performing well and driving profitability and those that are underperforming or are not good strategic fits for CHS.

In the first quarter of fiscal 2018, CHS reduced long-term debt by selling certain assets and limiting capital expenditures to projects related to safety and compliance.

Some recent actions that were taken to optimize assets and help restore financial flexibility include the following:

• CHS Processing and Food Ingredients (PFI) ceased operations and permanently closed its Hutchinson, Kan., and Creston, Iowa, soy processing plants and the Eagan, Minn., CHS Innovation and Technology Center. The South Sioux City, Neb., soy processing plant was closed in advance of a potential facility sale.

• CHS Europe sold its CHS Agromarket grain origination assets near Krasnodar, Russia.

• CHS Country Operations sold its Canadian retail assets and its 50 percent share of a joint venture with United Farmers of Alberta.

• CHS has entered into an agreement to sell 33 Cenex^® Zip Trip locations in Washington and Idaho. CHS remains committed to providing high-quality service at the remaining 35 Cenex Zip Trip store locations in Montana, Minnesota, Wyoming, North Dakota and South Dakota.

CHS SHARES COMMITMENT TO STRENGTHEN AND GROW

The 2017 CHS Annual Meeting was attended by 2,600 owners, cooperative leaders and strategic partners in person or via webcast, Dec. 7–8 in Minneapolis, Minn.

Annual meeting events included 25 informational exhibits, 26 educational sessions, company governance activity and opportunities for interacting with CHS leaders and Board members. Find a meeting recap, presentations, videos and photos at chsannualmeeting.com.

CHS Board Chairman Dan Schurr, right, and President and CEO Jay Debertin described how CHS leaders and management are working to strengthen and grow the organization.

GET MORE: Sign up to receive CHS press releases by email or RSS feed at chsinc.mediaroom.com.

CHS FOUNDATION CONTINUES TO INVEST IN AG LEADERS FOR LIFE

In September 2017, the CHS Foundation made a $3.8 million, three-year grant commitment to support the National FFA Organization and the National Teach Ag Campaign. The grant builds on the 40-year history of CHS Foundation support for FFA and helps ensure the organization can continue to support members as they evolve into a workforce with deep food and agriculture understanding.

The new commitment supports programs including diversified crop, environmental and natural resources management proficiencies; environment and natural resources management career development; teacher education and retention programs through National Teach Ag; and Curriculum for Agricultural Science Education teacher scholarships. New funding is dedicated to developing cooperative education curriculum and sponsorship of the New Century Farmer program.

To learn more about how the CHS Foundation is igniting innovation and driving excellence in agriculture education, visit chsinc.com/stewardship.

Published by CHS Inc. View All Articles.

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