Tue 30 Apr 2013, 22:01 GMT

World Fuel Services posts rise in Q1 net income


'Continuous headwinds' for marine segment as year-on-year gross profit falls 24 percent.



Leading marine, aviation and land fuel specialist World Fuel Services Corporation has today posted a rise in first quarter net income compared to 2012.

Net income during the first three months of the year was $48.7 million, or $0.68 diluted earnings per share, compared to $46.4 million, or $0.65 diluted earnings per share, in the corresponding period last year.

Non-GAAP net income and diluted earnings per share for the first quarter, which exclude share-based compensation and amortization of acquired intangible assets, were $55.0 million and $0.77, respectively, compared to $52.9 million and $0.74 in 2012.

The company’s marine segment generated a gross profit of $41.7 million, representing a decrease of $5.6 million, or 12 percent, sequentially and $13.4 million, or 24 percent, year-on-year.

The aviation segment achieved a gross profit of $77.0 million, which was an increase of $0.7 million, or 1 percent, sequentially and a rise of $12.1 million, or 19 percent, year-on-year.

The company’s land segment posted a gross profit of $63.7 million - an increase of $23.9 million, or 60 percent, sequentially and $26.5 million, or 71 percent, year-on-year.

"We are pleased with our overall performance in the first quarter despite continuous headwinds we face in our marine segment," stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “We continue to perform well in this uncertain global environment, while pursuing additional growth opportunities."

"We generated $110 million in operating cash flow in the first quarter, our second consecutive quarter of positive operating cash flow, further strengthening our financial profile," said Ira M. Birns, executive vice president and chief financial officer. "Our solid cash flow performance combined with our continued focus on driving operating efficiencies should enhance profitability, while providing greater liquidity to support organic growth and strategic investment opportunities."


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