102037--5/27/2010--UNIVERSAL_CORP_/VA/

related topics
{condition, economic, financial}
{operation, international, foreign}
{customer, product, revenue}
{product, liability, claim}
{cost, contract, operation}
{competitive, industry, competition}
{capital, credit, financial}
{loss, insurance, financial}
{regulation, change, law}
The leaf tobacco industry is highly competitive, and we are heavily reliant on a few large customers. Our financial results can be significantly affected by changes in the balance of supply and demand for leaf tobacco. Our financial results will vary according to growing conditions, customer requirements, and other factors. These factors also limit the ability to accurately forecast our future performance and increase the risk of an investment in our common stock or other securities. Major shifts in customer requirements for tobacco supply may significantly affect our operating results. In areas where we purchase leaf tobacco directly from farmers, we bear the risk that the tobacco we receive will not meet quality and quantity requirements. Weather and other conditions can affect the marketability of our products. Government efforts to regulate the production and consumption of tobacco products could have a significant impact on the businesses of our customers, which would, in turn, affect our results of operations. Government actions can have a significant effect on the sourcing of tobacco. If some of the current efforts are successful, we could have difficulty obtaining sufficient tobacco to meet our customers requirements, which could have an adverse effect on our performance and results of operations. Because we conduct a significant portion of our operations internationally, political and economic uncertainties in certain countries could have an adverse effect on our performance and results of operations. Changes in tax laws in the countries where we do business may adversely affect our results of operations. Failure of our customers or farmers to repay extensions of credit could materially impact our results of operations. Fluctuations in foreign currency exchange rates may affect our results of operations. Changes in interest rates may affect our results of operations. Low investment performance by our defined benefit pension plan assets may increase our pension expense, and may require us to fund a larger portion of our pension obligations, thus, diverting funds from other potential uses.

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