Mon 12 May 2008, 08:15 GMT

WFS posts record marine segment profits


$36.9m profit for marine segment helps company achieve better than expected results.



World Fuel Services Corporation (WFS) has reported record gross profits for its marine segment and a 6.7 percent increase in total net income compared to the first quarter of 2007.

The marine, aviation and land fuel products specialist, reported that its marine segment generated record gross profits of $36.9 million, an increase of 13 percent from the previous quarter and 25 percent year-over-year.

“Our marine segment has now generated year-over-year increases in gross profit for thirteen out of the last fourteen quarters and again experienced a year-over-year increase in volume. Our land segment experienced its sixth consecutive quarterly year-over-year increase in volume; however, gross profit was down 10% from the prior quarter and relatively flat year-over-year in the seasonally weak first quarter,” said Michael J. Kasbar, President and Chief Operating Officer.

The significant performance of the marine segment helped WFS to achieve better than expected financial results for the first quarter of 2008. Total GAAP first quarter net income for the Miami-based firm was $15.8 million ($0.55 per diluted share), compared to $14.8 million ($0.51 per diluted share), in the first quarter of 2007.

Non-GAAP net income for the first quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $17.4 million ($0.61 per diluted share) compared to $16.4 million ($0.58 and $0.56 per diluted share) in the first quarter of 2007. Analysts polled by First Call/Thomson Financial had expected the company to earn $0.54 per share for the quarter.

The company’s aviation segment generated gross profit of $35.1 million, a decrease of 10% from the previous quarter and an increase of 78% year-over-year. “Despite the difficult operating environment during the first quarter, our aviation segment delivered good results,” said Paul H. Stebbins [pictured], chairman and chief executive officer of World Fuel Services Corporation.


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