Fri 27 Feb 2009, 07:27 GMT

World Fuel Services posts $105 million FY08 profit


Increase in net income is helped by 78 percent rise in marine segment profits.



World Fuel Services Corporation, a global leader in the marketing and sale of marine, aviation and land fuel products, has posted better-than-expected financial results for the fourth quarter of 2008 and a US$40.2 million increase in net income for the full year, helped by a 78 percent rise in marine segment profits.

The company reported fourth quarter net income of $28.7 million, or $0.98 per share, compared to $18.1 million, or $0.63 per share during the same period in 2007, which represents a US$10.6 million profit increase.

For the full year, net income rose by US$40.2 million to $105.0 million, or $3.62 per share, compared to $64.8 million, or $2.23 per share, in 2007.

Non-GAAP net income for the fourth quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $36.3 million, or $1.24 non-GAAP diluted earnings per share, compared to $19.7 million, or $0.68 non-GAAP diluted earnings per share, in the fourth quarter of 2007.

For the full year, non-GAAP net income was $120.1 million, or $4.14 non-GAAP diluted earnings per share, compared to $71.0 million, or $2.44 non-GAAP diluted earnings per share, in 2007.

“We continue to provide value to the global supply chain in this turbulent global economic environment,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation.

“In 2008 we delivered record results, significantly improved our balance sheet and navigated risk in one of the most challenging markets in history. Our value proposition and liquidity should enable us to continue to execute on our long term strategy for growth.”

The company’s marine segment generated gross profit of $203.3 million in 2008, an increase of 78 percent year-on-year.

“While global trade slowed in the latter half of 2008, our strategy of focusing on disciplined risk management and value added services resulted in record operating profit in this segment,” said Michael J. Kasbar, president and chief operating officer.

The company’s aviation segment generated full year gross profit of $165.8 million, an increase of 35 percent when compared to full year 2007 results.

“During a year where we have seen the airline industry struggle with bankruptcies and an overall decline in global air traffic we managed risk, improved our results and successfully integrated AVCARD,” added Kasbar. The company’s land segment posted gross profit of $26.2 million in 2008 driven principally by the acquisition of the Texor business in June.

World Fuel Services also announced that its Board of Directors has approved an increase in its regular quarterly cash dividend from $0.0375 to $0.075 per share, representing a 100 percent increase over the regular quarterly cash dividend paid in 2008.

World Fuel’s Board of Directors also declared that the dividend for the first quarter of 2009 will be paid on April 8, 2009 to shareholders of record at the close of business on March 20, 2009.

“Consistent with our long term strategy to enhance shareholder value, we took action and doubled our dividend per share,” said Ira M. Birns, executive vice president and chief financial officer.

“We also are confident that our future cash flow generation, current liquidity profile and our continued focus on managing working capital will enable us to continue to grow the business both organically and through strategic investments.”


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