Fri 7 Nov 2008 16:42

WFS posts record marine profits


Marine segment generates 42 percent profit increase in Q3 2008.



Leading marine, aviation and land fuel specialist World Fuel Services Corporation has reported strong financial results for the third quarter of 2008, which included a record gross profit for its marine segment.

The company posted a third quarter GAAP net income of $40.1 million, ($1.38 and $1.37 per share on a basic and diluted basis, respectively), compared to $14.8 million ($0.53 and $0.51 per share on a basic and diluted basis, respectively), in the third quarter of 2007.

Non-GAAP net income for the third quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $43.6 million ($1.50 and $1.49 per share on a basic and diluted basis, respectively), compared to $16.2 million, ($0.58 and $0.56 per share on a basic and diluted basis, respectively), in the third quarter of 2007.

Commenting on the results, Paul H. Stebbins [pictured], chairman and chief executive officer of World Fuel Services Corporation, said "We delivered record results across all three business segments, fortified our balance sheet and increased our liquidity during a period of unprecedented market volatility and challenging global economic conditions."

"Our ability to support and add value to our customers and suppliers in this turbulent operating environment differentiates us from our competition and validates our critical position in the global supply chain," added Stebbins.

The company's marine segment generated record gross profit of $63.2 million, an increase of 42% from the prior quarter and 135% year-over-year.

"Our marine segment performed exceptionally, generating record results for the second consecutive quarter despite challenging market conditions, while Texor, acquired in June, delivered solid results for our land segment," commented Michael J. Kasbar, president and chief operating officer.

"Our significant working capital efforts combined with the positive benefit of declining fuel prices resulted in record operating cash flow of $287 million in the third quarter," said Ira M. Birns, executive vice president and chief financial officer.

"During the quarter we also entered into a $160 million accounts receivable facility, which combined with our cash position and $475 million revolving credit facility, provide substantial liquidity to support our working capital requirements and strategic investment opportunities going forward."

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