Thu 1 Aug 2013, 05:55 GMT

World Fuel Services posts rise in Q2 net income


Marine segment is the only to record an increase in gross profit sequentially and year-on-year.



World Fuel Services Corporation, a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services, has posted a second quarter net income of $51.0 million, or $0.71 diluted earnings per share, compared to $48.6 million, or $0.68 diluted earnings per share, in the second quarter of 2012.

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 $57.5 million and $0.80, respectively, compared to $52.8 million and $0.74 in 2012.

"Our second quarter results once again demonstrate the resilience and diversity of our business model. We are pleased with our overall performance especially in our marine segment," said Michael J. Kasbar, President and Chief Executive Officer of World Fuel Services Corporation. "We are confident that we will continue to capitalize on our unique business model in this ever changing marketplace."

The company's marine segment generated a gross profit of $52.3 million, representing an increase of $10.6 million, or 26%, sequentially and $600,000, or 1%, year-on-year.

The aviation segment achieved a gross profit of $76.0 million, which was a decrease of $1 million, or 1%, sequentially, but an increase of $6.9 million, or 10%, year-on-year.

The company's land segment posted a gross profit of $60.1 million - a decrease of $3.6 million, or 6%, sequentially, but an increase of $8.9 million, or 17%, year-on-year.

"We continue to generate positive operating cash flow, with the total amount generated over the past twelve months exceeding $335 million," said Ira M. Birns, Executive Vice President and Chief Financial Officer. "While many of the markets we serve remain challenging, our profitability and cash flow generation are strong, providing us with opportunities to fund both organic growth activities and strategic investments."


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