Fri 1 May 2015, 14:17 GMT

World Fuel Services posts record Q1 earnings


US firm achieves $55.6 million net income. Marine division posts a 13 percent rise in gross profit compared to last year.



Leading marine, aviation and land fuel specialist, World Fuel Services Corporation, has reported record first quarter earnings of $55.6 million, or $0.78 diluted earnings per share, compared to $50.7 million, or $0.71 diluted earnings per share, in the first quarter of 2014.

The 2015 figure represents a rise of $4.9 million, or 9.7 percent year-on-year.

Excluding the impact of the previously disclosed retirement of the company's former aviation segment president and a deferred revenue purchase accounting adjustment, adjusted first quarter net income was $59.0 million, or $0.83 diluted earnings per share.

Non-GAAP net income and diluted earnings per share for the first quarter, excluding share-based compensation, amortization of acquired intangible assets, costs associated with the aforementioned retirement and deferred revenue adjustments were $65.0 million and $0.91, respectively, compared to $58.5 million and $0.83 in 2014.

"The strength of our business model and the diversity of our markets served us well as we posted a solid result in the first quarter," stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. "We continue to develop our global energy, logistics, transaction management and payment processing platform within our existing markets and products and expand into adjacencies that will provide us with sustainable growth."

The company's marine segment generated a gross profit of $53.9 million - a decrease of $5.6 million or 9 percent sequentially, but an increase of $6.1 million, or 13 percent year-on-year.

The aviation segment achieved a gross profit of $82.9 million, representing an increase of $8.3 million, or 11 percent sequentially, and $14 million, or 20 percent year-on-year.

The land segment posted gross profit of $78.6 million, which was a decrease of $6.7 million, or 8 percent sequentially, but an increase of $7.3 million, or 10 percent year-on-year.

"We generated $107 million of operating cash flow in the first quarter, which marks the eleventh consecutive quarter of positive cash flow from operations and totals more than $700 million over this period," said Ira M. Birns, executive vice president and chief financial officer. "We continue to drive operational excellence across all of our business segments, while delivering solid returns to our shareholders."


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