Fri 7 Aug 2009, 08:16 GMT

World Fuel Services posts Q2 profit rise


Marine segment generates $40 million profit as US firm reports strong Q2 earnings.



World Fuel Services Corporation (WFS), a global leader in the marketing and sale of marine, aviation and land fuel products and related services, has reported second quarter net income of $27.7 million or $0.93 per share compared to $20.5 million or $0.71 per share in the second quarter of 2008 - a rise of $7.2 million year-on-year.

Non-GAAP net income for the second quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $30.7 million or $1.02 non-GAAP diluted earnings per share compared to $22.8 million or $0.78 non-GAAP diluted earnings per share in the second quarter of 2008.

"We again delivered solid results despite difficult economic conditions." said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation.

"Our operational efficiency continues to improve, providing us with significant operating leverage as the economy begins to recover."

"Our marine business performed well in a challenging global shipping market while we increased volumes sequentially in our aviation business for the first time in over a year," stated Michael J. Kasbar, president and chief operating officer.

"Our land segment generated record results in the second quarter and continues to gain momentum," added Kasbar.

The company's marine segment, which includes the sale of bunker fuels, generated gross profit of $40.3 million in the second quarter of 2009, a decrease of 9 percent year-over-year while the aviation segment generated second quarter gross profit of $39.7 million, a year-over-year decrease of 12 percent. The company's land segment posted gross profit of $11.5 million in the second quarter, an increase of 146 percent year-over-year.

"Despite the increase in crude oil prices during the second quarter, we effectively managed risk, further reduced our trade cycle, completed two acquisitions and generated over $30 million of operating cash flow," stated Ira M. Birns, executive vice president and chief financial officer.

"Our strong balance sheet and liquidity profile will support the continued execution of our strategy to grow the business both organically and through strategic investments."


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