Wed 2 May 2012, 08:14 GMT

WFS posts 13% rise in Q1 net income



Marine, land and aviation fuel specialist, World Fuel Services Corporation, has reported a year-on-year rise in net income of $5.3 million, or 12.9 percent, during the first quarter of 2012.

First quarter net income was $46.4 million, or $0.65 diluted earnings per share, compared to $41.1 million, or $0.58 diluted earnings per share, in the first quarter of 2011.

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 $52.9 million and $0.74 respectively, compared to $46.8 million, or $0.66, in 2011.

“We continue to serve an important role in worldwide commerce to provide value, convenience and confidence between users and providers of energy products and services,” stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “By delivering on our strategy, we continue to validate our growing importance to the energy and transportation marketplaces.”

The company’s marine segment generated a gross profit of $55.1 million, representing an increase of approximately $0.9 million, or 2 percent, sequentially and $14.9 million, or 37 percent, year-on-year.

The US firm's aviation segment generated a gross profit of $64.9 million in the first quarter of 2012 - a decrease of $5.1 million, or 7 percent, sequentially and $5.2 million, or 7 percent, year-on-year.

The company’s land segment posted a gross profit of $37.2 million, which was a decrease of $0.9 million, or 2 percent, sequentially but an increase of $10.8 million, or 41 percent, year-on-year.

“Despite challenging market dynamics, we reduced our net trade cycle this quarter, contributing to the generation of $49 million of operating cash flow, our second consecutive quarter of positive operating cash flow, further contributing to our solid liquidity profile,” said Ira M. Birns, executive vice president and chief financial officer.


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