103973--2/26/2007--VULCAN_MATERIALS

related topics

{gas, price, oil}

{financial, litigation, operation}

{cost, operation, labor}

{condition, economic, financial}

{regulation, change, law}

We use large amounts of electricity, diesel fuel, liquid asphalt and other petroleum-based resources that are subject to potential supply constraints and significant price fluctuation. We use estimates in accounting for a number of significant items. Changes in our estimates could affect our future financial results. We are involved in a number of legal proceedings. We cannot predict the outcome of litigation and other contingencies with certainty. The costs of providing pension and healthcare benefits to our employees have risen in recent years. Continuing increases in such costs could negatively affect our earnings. Our industry is capital intensive, resulting in significant fixed and semi-fixed costs. Therefore, our earnings are highly sensitive to changes in volume. Our products generally must be transported by rail, truck, barge or ship, usually by third party providers. Significant delays or increased costs affecting these transportation methods could materially affect our operations and earnings.

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103973--2/26/2007--VULCAN_MATERIALS_CO