100378--9/13/2006--TWIN_DISC

related topics

{operation, international, foreign}

{customer, product, revenue}

{gas, price, oil}

{cost, operation, labor}

{cost, contract, operation}

{cost, regulation, environmental}

{product, liability, claim}

{personnel, key, retain}

As a global company, we are subject to currency fluctuations and any significant movement between the U.S. Dollar and the Euro, in particular, could have an adverse effect on our profitability. Certain of the Company s products are directly or indirectly used in oil exploration and oil drilling, and are thus dependent upon the strength of those markets and oil prices. Given the increase in the global demand for steel, the Company could be adversely affected if it experiences shortages of raw castings and forgings used in the manufacturing of its products. If the Company were to lose business with any key customers, the Company s business would be adversely affected. The Company continues to face increasing commodity costs, including steel, other raw materials and energy that could have an adverse effect on future profitability. The termination of relationships with the Company s suppliers, or the inability of such suppliers to perform, could disrupt its business and have an adverse effect on its ability to manufacture and deliver products. A significant design, manufacturing or supplier quality issue could result in recalls or other actions by the Company that could adversely affect profitability. The Company faces risks associated with its international sales and operations that could adversely affect its business, results of operations or financial condition. A material disruption at the Company s manufacturing facilities in Racine, Wisconsin could adversely affect its ability to generate sales and meet customer demand.

Full 10-K form ▸

100378--9/13/2006--TWIN_DISC_INC