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Wed 4 May 2011, 06:51 GMT

WFS posts 22 percent rise in Q1 net income


Marine segment generates 2 percent year-on-year increase in Q1 gross profit.

Leading marine, aviation and land fuels specialist World Fuel Services Corporation has reported a US$7.4 million, or 22.0 percent, year-on-year rise in net income during the first quarter of 2011.

First quarter net income for the first three months of this year was $41.1 million, or $0.58 diluted earnings per share, compared to $33.7 million, or $0.56 diluted earnings per share, in the first quarter of 2010.

Non-GAAP net income for the first quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $46.8 million, or $0.66 non-GAAP diluted earnings per share, compared to $36.2 million, or $0.60 non-GAAP diluted earnings per share, in the first quarter of 2010.

The company's marine segment generated a gross profit of $40.2 million, representing a decrease of $1.3 million, or 3 percent, sequentially, but an increase of $0.8 million, or 2 percent, from last year's results.

The aviation segment generated a gross profit of $70.1 million in the first quarter of 2011, representing a rise of $12.1 million, or 21 percent, sequentially, and an increase of $21.8 million or 45% year-on-year.

The land fuels division posted a gross profit of $26.4 million in the first quarter, which represented an increase of $2.4 million or 10 percent sequentially, and $15.4 million, or 139 percent, year-on-year.

"During the quarter, we continued to demonstrate our ability to leverage our risk management disciplines, while profitably growing the business," said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation.

"We are pleased with our strong results in what continues to be a very challenging operating environment," Stebbins added.

"We closed and integrated the NCS acquisition during the quarter, which will allow us to leverage our existing business activities in the fuel logistics marketplace," stated Michael J. Kasbar, president and chief operating officer. "We have also recently completed the acquisition of Ascent, which combined with the other recent acquisitions and core business, strengthens our leadership position in the general and business aviation space."

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