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CHS Posts 1st Quarter 2012 Earnings of $416.2 million

Earnings attributed to CHS operations for the period (Sept. 1, 2011 through Nov. 30, 2011) increased 106 percent over the $201.7 million for first quarter of fiscal 2011.

Revenues for first quarter of fiscal 2012 reached $9.7 billion, compared with $8.1 billion for the first three months of fiscal 2011, primarily reflecting continued strong values for the energy, grain and crop nutrients products that comprise the majority of CHS business.

Earnings were led by the Energy segment, with the majority resulting from improved margins generated by the CHS Refinery at Laurel, Mont., and the National Cooperative Refinery Association of McPherson, Kan., in which CHS currently owns nearly 75 percent. The company's propane, lubricants and transportation businesses also reported improved earnings for the first quarter of fiscal 2012, while earnings for the same period declined for its renewable fuels marketing and distribution operations.

While soundly profitable, earnings declined within the CHS Ag Business segment due to lower margins for the grains and oilseeds the company markets and processes, as well as for those handled by its Country Operations locally controlled retail businesses. The company's crop nutrients business reported a quarter-over-quarter increase in earnings due to increased margins.

CHS reports results for its business services operations, as well as two food processing-related joint ventures, under the Corporate and Other category. CHS-owned insurance and financing businesses reported lower earnings for the first quarter of fiscal 2012, while earnings in its risk management business improved. The company's share of earnings from its 50 percent ownership of Ventura Foods, LLC, a vegetable oil-based food manufacturing business, declined due to decreased margins, as did those from its 24 percent CHS share of Horizon Milling, LLC, the nation's leading wheat miller.

CHS Inc. (www.chsinc.com) is the nation's leading cooperative, owned by farmers, ranchers and co-ops across the United States. A diversified energy, grains and foods business and a Fortune 100 company, CHS is committed to providing the essential resources that enrich lives around the world. 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® brand refined fuels, lubricants, propane and renewable energy products. CHS preferred stock 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, 2011, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.

                                                          CHS Inc. Earnings
                                                             By segment
                                                           (in millions $)
                                                                            For the Three Months Ended
                                                                                      Nov. 30,
                                                                                   2012                  2011
                                                                                   ----                  ----


    Energy                                                                       $397.3                 $57.2
    Ag Business                                                                   121.4                 154.7
    Corporate and Other                                                            12.2                  19.3
     Income before income taxes                                                   530.9                 231.2
     Income taxes                                                                 (42.0)                (24.9)
                                                                                  -----                 -----
     Net income                                                                   488.9                 206.3
     Net income attributable to non-controlling interests                         (72.7)                 (4.6)
                                                                                  -----                  ----
     Net income attributable to CHS Inc.                                         $416.2                $201.7
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SOURCE CHS Inc.