1057693--3/15/2006--NATCO_GROUP

related topics

{customer, product, revenue}

{acquisition, growth, future}

{cost, operation, labor}

{loss, insurance, financial}

{cost, regulation, environmental}

{gas, price, oil}

{personnel, key, retain}

{interest, director, officer}

{control, financial, internal}

{operation, international, foreign}

{stock, price, operating}

{competitive, industry, competition}

{financial, litigation, operation}

{system, service, information}

{capital, credit, financial}

Risks Relating to Our Business Our achievement of projected revenue and earnings targets in 2006 and beyond is dependent on our ability to successfully implement our strategic goals. Our achievement of productivity and cost containment targets in 2006 and beyond is dependent on our ability to successfully execute our cost control initiatives. Competition could result in reduced profitability and loss of market share. Our international operations may experience interruptions due to political and economic risks. A substantial or extended decline in commodity prices could result in lower expenditures by the oil and gas industry, thereby negatively affecting our revenue and results of operations. The dollar amount of our backlog, as stated at any given time, is not necessarily indicative of our future cash flow. Most of our contracts are fixed-price contracts that are subject to gross profit fluctuations, which may impact our margin expectations. We have relied and we expect to continue to rely on a limited number of customers for a significant portion of our revenues. Liability to customers under warranties may materially and adversely affect our cash flow. Our ability to attract and retain skilled labor is crucial to our profitability. Our ability to manage third party sub-contractors could affect our profitability. Future acquisitions, if any, may be difficult to integrate, disrupt our business and adversely affect our operating results. Our quarterly sales and cash flow may fluctuate significantly. Our insurance policies may not cover all claims against us or may be insufficient in amount to cover such claims. We may incur substantial costs to comply with our environmental obligations. Our ability to secure and retain necessary financing may be limited. Our system of internal controls is designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes. A loss of public confidence in the quality of our internal controls or disclosures could have a negative impact on us.

Full 10-K form ▸

1057693--3/15/2006--NATCO_GROUP_INC