ST. PAUL, Minn., Jan. 13 /PRNewswire-FirstCall/ -- CHS Inc. (Nasdaq: CHSCP), a leading energy and grain-based foods company, today reported earnings of $137.3 million for the first quarter of its 2009 fiscal year.

Net income for the quarter (Sept. 1 - Nov. 30, 2008) compared with $300.9 million for the same period of fiscal 2008. Operating earnings for the quarter were $232.8 million compared with $248.2 million for the same period a year ago. Revenues for the quarter were $7.7 billion, up from $6.5 billion for the first quarter of fiscal 2008. The increased revenues were attributed to higher values in the first quarter of fiscal 2009 for grain and crop nutrient products the company handles compared with first quarter 2008.

Energy earnings for the quarter reflected strong performance within refined fuels for the quarter, along with a $15.7 million gain on the sale of CHS ownership of a seat on the New York Mercantile Exchange. Also within the energy segment, CHS propane, lubricants, renewable fuels marketing and transportation businesses reported slightly lower earnings compared with fiscal 2008.

Declining values and demand for both grain and crop nutrients resulted in lower earnings within the company's Ag Business segment for the first quarter of fiscal 2009 when compared to the same period a year ago, although CHS local retail operations turned in strong performance. During the first quarter of fiscal 2008, CHS earnings included a gain of $91.7 million on the company's sale of stock in CF Industries, a crop nutrients manufacturer.

The company's Processing segment operating results were comparable to the same period a year ago, representing strong performance by its wholly owned oilseed processing operations, while reduced consumer demand driven by the national economic downturn resulted in slightly lower earnings for its portions of the Ventura Foods, LLC, food and Horizon Milling, LLC, wheat milling joint ventures. CHS also reported slightly lower earnings from its financing, insurance services and hedging businesses.

During the first quarter of fiscal 2009, CHS also recorded within its Processing segment a $70.7 million ($64.4 million net of taxes) impairment on the value of its ownership of VeraSun Energy Corp., an ethanol manufacturer which filed for Chapter 11 bankruptcy protection in October 2008. CHS previously recorded an impairment of $71.7 million ($55.3 million net of taxes) in the fourth quarter of fiscal 2008.

CHS Inc. (http://www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, across the United States. CHS supplies energy, crop nutrients, grain, livestock 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(R) brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.

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, 2008, which can be found on the Securities and Exchange Commission web site (http://www.sec.gov) or on the CHS web site http://www.chsinc.com.




                              CHS Inc. Earnings
                                  By segment
                               (In millions $)

                              Sept. 1 - Nov. 30

                                        1stQ 2009          1stQ 2008

     Energy                               184.7              108.5
     Ag Business                           19.7              204.7
     Processing                           (52.7)              20.2
     Corporate and Other                    4.5                4.4
     Taxes                                (18.9)             (36.9)
     Net Income                          $137.3              300.9

SOURCE CHS Inc.