Last week, the company purchased instruments to cover its anticipated fuel-price-related earnings exposure for the last three quarters of 2010. The company hedged 90 percent of its anticipated exposure through the fourth quarter of 2009, 80 percent of its first-half 2010 exposure, 53 percent of its third-quarter 2010 exposure and 27 percent of its fourth-quarter 2010 exposure. The company plans to hedge approximately 80 percent of its fuel-price-related earnings exposure in every quarter, on a rolling basis.
The purchase secured a fuel price range of approximately $2.65 to $2.71 per gallon.
Wright Express is a provider of payment processing and information management services. The company's charge cards are used by commercial and government fleets to purchase fuel and maintenance services.
More info: www.wrightexpress.com.