World Fuel Services 2008 Annual Report Download - page 3

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Gross Profi t
($ in millions)
$ 6.0
$ 8.0
$ 26.2
MARINE AVIATION
LAND
Revenue
($ in billions)
Revenue
($ in billions)
Revenue
($ in millions)
Paul H. Stebbins
‘06
$ 420.7
$ 602.9
$ 1,299.6
‘07 ‘08
Income from
Operations
($ in millions)
$ 1.1 $ 1.2
$ 3.5
‘06
$ 5.8 $ 4.6
$ 7.7 $ 5.5
$ 9.9 $ 7.3
‘07 ‘07 ‘07‘08 ‘08 ‘08
Income from
Operations
($ in millions)
$ 44.2 $ 50.8
$ 121.8
Income from
Operations
($ in millions)
$ 56.6
$ 60.8
$ 68.1
Gross Profi t
($ in millions)
$ 106.9
$ 122.8
$ 165.8
Gross Profi t
($ in millions)
$ 101.2 $ 114.5
$ 203.3
This comprehensive service offering continues to drive value for
customers and suppliers alike as we help them navigate through a very
diffi cult marketplace.
Worthy of special note is the systemic concern about counter-party
risk which has prompted our customers to scrutinize more carefully
the fi nancial viability, transparency and corporate governance of their
vendors. This is a welcome trend for World Fuel. What were strong
competitive differentiators for us in a good market have become
essential requirements for doing business in a diffi cult market. This new
level of counter-party scrutiny has only served to highlight the strength
of our business model and validate the value of our global offering. At a
tactical level we are better positioned than ever to continue to service
our core business in an uncertain market.
At a strategic level, we believe the company has secured a leadership
position in a market rich with opportunity across all three of our business
segments. The upheaval in the global economy has precipitated tectonic
shifts in the energy, transportation and fi nance industries. Enterprise
valuations are at all time lows and good businesses are starved for
capital in a climate of unrelenting scarcity of credit. Our strong liquidity
position should allow us to capitalize on these conditions as we look to
compliment organic growth with strategic acquisitions, as evidenced
by the acquisitions of AVCARD in 2007, Texor in 2008 and TGS and
Henty Oil thus far in 2009. As we look forward, we will be reviewing
additional opportunities to make accretive acquisitions with a focus on
our core space of fuel distribution, services and logistics.
For World Fuel, 2008 was a remarkable year. We successfully launched
our new ERP system, achieved new milestones in organizational
maturity, effectively managed risk in a wildly volatile market and
delivered record fi nancial performance. In the most recent Fortune 500
listing, World Fuel was ranked fourth in total return to shareholders for
2008. And, as evidence of our ability to drive long-term shareholder
value, we were ranked 11th in total return to shareholders over 10 years.
As we look forward, we harbor the same concerns our shareholders
have about the tough economic conditions faced by our country and the
world and we will continue to engage the marketplace with discipline
and caution. But, we take a great deal of comfort in the fact that we
enter 2009 with a strong fi nancial foundation. And while we remain
cautious about over-promising on our ability to drive growth in this
challenging operating environment, it is important to note that we
believe the crisis has created signifi cant strategic opportunity for World
Fuel. The position we have achieved in the marketplace represents the
culmination of years of effort and investment, and we are optimistic
about our ability to continue to deliver signifi cant value to all of our
stakeholders going forward.
‘06 ‘06 ‘07 ‘07 ‘07‘08 ‘08 ‘08‘06 ‘06 ‘06
‘06 ‘06‘07 ‘07‘08 ‘08
Michael J. Kasbar