Wed 4 Nov 2009 07:28

WFS net income drops 27 percent


Q3 marine segment profit falls 37 percent during 'challenging economic conditions'.



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 a 27 percent year-on-year fall in net income for the third quarter compared to the same period last year.

Net income for the July to September period was $29.1 million or $0.97 per share compared to $40.1 million, or $1.37 per share in the third quarter of 2008, representing a decrease of $11 million.

However, third quarter net income was $1.4 million higher than during the prevous quarter when it reached $27.7 million or $0.93 per share.

Non-GAAP net income for the third quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $31.4 million or $1.04 non-GAAP diluted earnings per share compared to $43.6 million or $1.49 non-GAAP diluted earnings per share in the third quarter of 2008.

The marine segment generated third quarter gross profit of $40.2 million, $0.1 million lower than the previous quarter and 37 percent down from the record results achieved in the third quarter of last year.

Commenting on the results, Michael J. Kasbar, president and chief operating officer, said “The marine business performed well despite challenging economic conditions.”

The company’s aviation segment generated gross profit of $42.9 million in the third quarter of 2009, an increase of $3.1 million or 8% sequentially, but a decrease of 15% from last year’s record third quarter. The company’s land segment posted gross profit of $11.7 million in the third quarter, an increase of 2% sequentially and 15% year-over-year.

“Our aviation segment posted strong sequential volume growth, resulting in the first year-over-year increase in five quarters and achieving volumes not seen since the second quarter of 2008,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. “We remain focused on aggressively managing risk, improving our customer offering and enhancing our global supply relationships.”

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