Fri 8 May 2009, 06:53 GMT

World Fuel Services posts 63% profit increase


Increase in net income is helped by rise in marine segment profit.



World Fuel Services Corporation (WFS), a global leader in the marketing and sale of marine, aviation and land fuel products, has posted a 63 percent rise in net income during the first quarter of 2009, helped in part by a 28 percent increase in marine segment profit.

The company reported a first quarter net income of $25.8 million, or $0.87 per share, compared to $15.8 million, or $0.54 per share in the first quarter of 2008, representing a US$13 million profit increase year-on-year.

“Although the global economy remained uncertain, we delivered strong first quarter results, effectively managed risk and continued to execute upon our long-term growth strategy,” said Paul H. Stebbins, chairman and chief executive officer of WFS.

“Our balance sheet and liquidity position remain very strong as we continue to be the counterparty of choice in the markets we serve.”

The company’s marine segment generated a gross profit of $47.1 million in the first quarter of 2009, an increase of 28 percent year-on-year.

“During a quarter in which markets continued to soften, our heightened discipline and solid execution allowed us to generate strong operating results,” commented Michael J. Kasbar, president and chief operating officer.

The company’s aviation segment generated first quarter gross profit of $32.0 million, a year-over-year decrease of 9%. “While industry conditions remain challenging, our aviation segment delivered good results,” added Kasbar.

The company’s land segment posted gross profit of $8.2 million in the first quarter, an increase of $6.4 million year-on-year, driven principally by the acquisition of Texor, WFS said.

“By delivering strong operating results and further reducing our net trade cycle we generated $89.6 million of operating cash flow in the first quarter,” said Ira M. Birns, executive vice president and chief financial officer.

“We have now generated more than $570 million of operating cash flow over the past three quarters, further strengthening our balance sheet and liquidity profile,” added Birns.


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