Wed 1 Aug 2012, 21:57 GMT

WFS posts dip in Q2 net income


Second quarter net income of $48.6 million is 3.2 percent lower than in 2011.



Leading marine, aviation and land fuel specialist World Fuel Services (WFS) has today reported a year-on-year decrease in net income of $1.6 million, or 3.2 percent, during the second quarter of 2012.

WFS achieved a second quarter net income of $48.6 million, or $0.68 diluted earnings per share, compared to $50.2 million, or $0.70 diluted earnings per share, in the second quarter of 2011.

Non-GAAP net income and diluted earnings per share for the second quarter, which exclude share-based compensation and amortization of acquired intangible assets, were $52.8 million and $0.74, respectively, compared to $57.7 million or $0.81 in 2011.

"We are pleased with our second quarter performance, which demonstrates the effectiveness of our multi-faceted business model,” said Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “We remain optimistic about our ability to deliver on our long-term growth strategy.”

The company’s marine segment generated a gross profit of $51.7 million, representing a decrease of approximately $3.3 million or 6 percent sequentially, but an increase of $1.1 million or 2 percent year-on-year.

The aviation segment generated a gross profit of $69.2 million in the second quarter of 2012, which was an increase of $4.3 million or 7 percent sequentially, but a decrease of $12.9 million or 16 percent year-on-year.

The company’s land segment posted a gross profit of $51.2 million - an increase of $14 million or 38 percent sequentially and $18.8 million or 58 percent year-on-year.

"The strength of our balance sheet remains a key differentiator for us in the current market environment," said Ira M. Birns, executive vice president and chief financial officer. "Our solid liquidity profile should enable us to continue investing in organic and external growth opportunities, while we continue to maintain strong operating expense disciplines."


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