World Fuel Services Corp. (NYSE:INT) Q1 2018 Earnings Conference Call Transcript
Apr 26, 2018 • 05:00 pm ET
Michael J. Kasbar
and then I'll make some further comments and we'll save some time for Q&A. Ira?
Ira M. Birns
Thank you, Mike, and good evening, everyone. Today we announced adjusted net income of $35 million for the first quarter, that's an increase of $400,000 when compared to the first quarter of 2017. Adjusted diluted earnings per share was $0.52 in the first quarter, that's up $0.02 from the first quarter of last year.
Consolidated revenue for the first quarter was $9.2 billion, that's up 12%, compared to the first quarter of 2017. This increase was principally due to a 22% year-over-year increase in oil prices, compared to the first quarter of last year, offset in part by lower volume in the Marine and Land segments, which I will discuss shortly.
Our Aviation segment volume was 2 billion gallons in the first quarter, up approximately 135 million gallons or 7% year-over-year. Volume growth in our Aviation segment was derived principally from our core resale operations in North America and EMEA, as well as our acquired international physical fueling operations.
Volume in our Marine segment for the first quarter was 5.8 million metric tons, that's down approximately 1.1 million metric tons or 16% year-over-year. The largest drivers of the volume reduction relate to our operations in the Asia-Pac region and our decision to exit certain low margin or unprofitable markets, which we spoke about last quarter.
Our Land segment volume was 1.46 billion gallons and gallon equivalents during the first quarter, that's down approximately 40 million gallons or 3%, compared to the first quarter of 2017. The decline in Land segment volume was principally driven by the reduction in supply in trading activities during the first quarter. And total consolidated volume in the first quarter was 4.9 billion gallons. That represents a decrease of approximately 180 million gallons or 4% year-over-year.
Before I continue with our financial overview, please note that the following figures exclude $4.8 million of pretax non-operational expenses in the first quarter, as well as non-operational items in previously reported periods, as highlighted in our earnings release. The non-operational expenses are principally comprised of acquisition-related expenses and severance costs. To assist all of you in reconciling results published on our earnings release and 10-Q, the breakdown of the $4.8 million of non-operational expenses can be found on our website on the last slide of our webcast presentation today.
Consolidated gross profit for the first quarter was $244 million, that's a $12 million increase or 5% increase, compared to the first quarter of last year. Our Aviation segment contributed $110 million of gross profit in the first quarter, that's an increase of $10 million or 10%, compared to the first quarter of 2017.
Commercial activity in North America and Europe increased year-over-year and despite lower margins from our recently renewed government contract, contributions from our NCS government business also increased when compared to the first quarter of last year, driven by increased volumes and continued spot activity in the region. We still expect contributions