World Fuel Services 2005 Annual Report Download - page 23

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and foreign tax laws or our failure to comply with those tax laws could adversely affect our business and
operating results.
We face intense competition and, if we are not able to effectively compete in our markets, our revenues
and profits may decrease.
Competitive pressures in our markets could adversely affect our competitive position, leading to a possible
loss of market share or a decrease in prices, either of which could result in decreased revenues and profits. Our
competitors are numerous, ranging from large multinational corporations, which have significantly greater capital
resources, to relatively small and specialized firms. In addition to competing with fuel resellers, we also compete
with the major oil producers that market fuel directly to the large commercial airlines and shipping companies.
Our business could be adversely affected because of increased competition from the larger oil companies who
may choose to directly market to smaller airlines and shipping companies, or to provide less advantageous price
and credit terms to us than our fuel reseller competitors.
If we fail to successfully implement our enterprise integration project, our business could be harmed
We are currently undertaking the implementation of an enterprise integration project, which consists of a
company-wide financial and commercial information system upgrade. The total capital expenditures required for
this project are currently estimated to be $13.1 million. If we are unsuccessful in implementing this project, or
should we experience material delays in implementation, our ability to grow our business would be adversely
affected. In addition, should the actual costs of the project exceed our estimates, our liquidity and capital position
could be adversely affected.
If we fail to comply with environmental laws and governmental regulations, we could suffer penalties or be
required to make significant changes to our operations.
We are required to comply with extensive and complex environmental laws and regulations at the
international, federal, state and local government levels relating to, among other things:
• the handling of fuel and fuel products;
• the operation of bulk fuel storage facilities;
• workplace safety;
• fuel spillage or seepage;
• environmental damage; and
• hazardous waste disposal.
If we are involved in a spill or other accident involving hazardous substances, if there are releases of fuel
and fuel products we own, or if we are found to be in violation of environmental laws or regulations, we could be
subject to liabilities that could have a material adverse effect on our business, financial condition and results of
operations. We are also subject to possible claims by customers, employees and others who may be injured by a
fuel spill, exposure to fuel or other accidents. If we should fail to comply with applicable environmental
regulations, we could be subject to substantial fines or penalties and to civil and criminal liability.
If we are held liable for clean up and other costs related to several businesses we exited, which handled
hazardous and non-hazardous waste, such liability could adversely affect our business and financial
condition.
We have exited several businesses that handled hazardous and non-hazardous waste. We treated and/or
transported this waste to various disposal facilities. We have been sued in the past and may be sued in the future
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