1061507--4/2/2007--GRAHAM_PACKAGING_HOLDINGS_CO

related topics
{customer, product, revenue}
{property, intellectual, protect}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{product, market, service}
{acquisition, growth, future}
{operation, international, foreign}
{personnel, key, retain}
{cost, operation, labor}
{stock, price, operating}
{competitive, industry, competition}
The Company s debt agreements contain restrictions that limit its flexibility in operating its business. Available cash and access to additional capital may be limited by the Company s substantial leverage. Increases in resin prices and reductions in resin supplies could significantly slow the Company s growth and disrupt its operations. The Company s international operations are subject to a variety of risks related to foreign currencies and local law in several countries. The company would lose a significant source of revenues and profits if it lost its largest customer. Contracts with customers generally do not require them to purchase any minimum amounts of products from the Company, so customers may not purchase amounts that meet the Company s expectations. The Company s industry is very competitive and increased competition could reduce prices and its profit margins. If the Company is unable to develop product innovations and improve its production technology and expertise, the Company could lose customers or market share. The Company may be unable to protect its proprietary technology from infringement. Sales of the Company s beverage containers may be affected by cool summer weather which may result in lower sales and profitability. The Company s operations could expose it to substantial environmental costs and liabilities. Blackstone Investors control the Company and may have conflicts of interest with the Company in the future. The Company s ability to operate effectively could be impaired if it lost key personnel. If the Company makes acquisitions in the future, it may experience assimilation problems and dissipation of management resources and it may need to incur additional indebtedness. The Company s operations and profitability could suffer if it experiences labor relation problems. The Company s ability to expand its operations could be adversely affected if it loses access to additional blow molding equipment.

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