World Fuel Services 2008 Annual Report Download - page 17

denominated in foreign currencies. This subjects us to foreign currency exchange risk. Although we use hedging
strategies to manage and minimize the impact of foreign currency exchange risk, at any given time, only a
portion of such risk may be hedged and such risk may be substantial. As a result, fluctuations in foreign exchange
rates could adversely affect our profitability.
In addition, many of our customers are foreign customers and may be required to purchase U.S. dollars to
pay for our products and services. A rapid depreciation or devaluation in currency affecting our customers could
have an adverse effect on our customers’ operations and their ability to convert local currency to U.S. dollars to
make required payments to us. This would in turn increase our credit losses which would adversely affect our
business, financial condition and results of operations.
Third parties who fail to provide services to us and our customers as agreed could harm our business.
We use third parties to provide various services to our customers, including into-plane fueling at airports,
fueling of vessels in port and at sea and delivering land-based fuel. The failure of these third parties to perform
these services in accordance with the agreed terms for any reason, such as an interruption of their business
because of weather (such as Hurricane Katrina), environmental or labor difficulties or political unrest, could
affect our relationships with our customers and subject us to claims and other liabilities which might have a
material adverse effect on our business, financial condition and results of operations.
We also use third parties to store our fuel inventory and to transport fuel. If these third parties become
bankrupt or otherwise fail to meet their commitments to creditors, our fuel could be seized and applied against
amounts owed to such creditors. This could cause both disruptions in our business and financial losses.
If the fuel we purchase from our suppliers fails to meet the specifications we have agreed to supply to our
customers, our business could be adversely affected.
We purchase the fuel we resell from various suppliers. If the fuel fails to meet the specifications we have
agreed to supply to our customers, our relationship with our customers could be adversely affected and we could
be subject to claims and other liabilities which could have a material adverse effect on our business, financial
condition and results of operations. Although in most cases we have recourse against our suppliers for fuel which
fails to meet agreed specifications, such recourse cannot be assured.
Non-performance of suppliers on their sale commitments and customers on their purchase commitments
could disrupt our business.
We enter into sale and purchase agreements with customers and suppliers for fuel at fixed prices. To the
extent either a customer or supplier fails to perform on their commitment, we may be required to sell or purchase
the fuel at prevailing market rates, which could be significantly different than the fixed price within the sale and
purchase agreements and therefore could have a material adverse effect on our business, financial condition and
results of operations.
Material disruptions in the availability or supply of fuel would adversely affect our business.
The success of our business depends on our ability to purchase, sell and coordinate delivery of fuel and fuel-
related services to our customers. Our business would be adversely affected to the extent that political instability,
natural disasters, such as hurricanes, terrorist activity, military action or other conditions disrupt the availability
or supply of fuel.
Adverse conditions in the marine, aviation and land transportation industries may have an adverse effect
on our business.
Our business is focused on the marketing of fuel and fuel-related services to the marine, aviation and land
transportation industries. Therefore, any adverse economic conditions in these industries may have an adverse
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