Thu 28 Apr 2016 13:45

World Fuel Services posts 27% drop in marine gross profit


First-quarter net income dipped $3.2 million, or 5.8 percent,



World Fuel Services Corporation has today reported a dip in first-quarter net income of $3.2 million, or 5.8 percent, as marine gross profit dropped 27 percent year-on-year.

Net income for the first three months of this year was $52.4 million, or $0.75 diluted earnings per share, compared with $55.6 million, or $0.78 diluted earnings per share, in the first quarter of 2015.

Excluding the impact of certain non-recurring expenses, adjusted first quarter net income was $53.6 million, or $0.77 adjusted diluted earnings per share, down from $59.0 million, or $0.83 diluted earnings per share in the first quarter of 2015.

Non-GAAP net income and diluted earnings per share for the first quarter, excluding share-based compensation, amortization of acquired intangible assets and certain non-recurring expenses, were $63.1 million and $0.91, respectively, compared with $65.0 million and $0.91 in 2015.

"While results were impacted this quarter by the unseasonably warm weather in the U.K. and U.S. and continued weakness in the marine markets, our aviation and land segments performed well, with our overall volumes up 6% year-over-year," stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation.

"Despite the disruption in energy markets and continued global economic weakness, we remain confident in the ability of our diversified logistics, transaction and energy management business model to deliver near and long-term growth," he added.

The company's marine segment generated a gross profit of $39.2 million, which is a decrease of $14.8 million, or 27 percent, year-on-year.

The aviation segment posted a gross profit of $91.0 million, representing an increase of $8.1 million, or 10 percent, year-over-year.

The land segment achieved a gross profit of $93.6 million - an increase of $15.1 million, or 19 percent, year-on-year.

"We generated $139 million of operating cash flow during the quarter, further strengthening our balance sheet and providing us with additional liquidity to invest in organic growth initiatives and strategic investment opportunities," said Ira M. Birns, executive vice president and chief financial officer.

"Our ability to consistently generate healthy levels of operating cash flow has contributed to improved returns on invested capital and reduced our level of net debt to just over $100 million."

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