1053439--3/31/2006--Stanadyne_Holdings

related topics
{cost, regulation, environmental}
{competitive, industry, competition}
{debt, indebtedness, cash}
{cost, contract, operation}
{product, market, service}
{control, financial, internal}
{customer, product, revenue}
{loss, insurance, financial}
{cost, operation, labor}
{product, liability, claim}
{property, intellectual, protect}
{personnel, key, retain}
{operation, international, foreign}
{capital, credit, financial}
We are subject to risks associated with changes in technology, changes in manufacturing techniques and changes in customer product demands or specifications, which could place us at a competitive disadvantage. The industries in which we operate are cyclical, which can make our sales vary in unpredictable ways. Our base of customers is concentrated and the loss of business from a major customer or the failure to maintain our customer relationships could materially adversely affect us. We face competition in our markets, which could hurt market share and sales. Increases in our raw material costs or the loss of a substantial number of our suppliers could affect our financial health. Our international operations are subject to uncertainties that could affect our operating results. We have significant pension obligations with respect to our employees. Unionization of our labor force could increase our operating costs and impact profitability. We depend on the services of key individuals and relationships, the loss of which would materially harm us. Our intellectual property may be misappropriated or subject to claims of infringement. We could face potential product liability claims relating to products we manufacture or distribute. Our insurance coverage may be inadequate to protect against the potential hazards incident to our business. Environmental regulation may impose significant environmental compliance costs and liabilities on us. If we are unable to meet future capital requirements, our business may be adversely affected. Failure to establish and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our business. Holdings is solely responsible for paying certain promissory notes it issued and since it has no independent operations and its subsidiaries are restricted from making distributions to Holdings, Holdings may be unable to repay the notes.

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