108312--11/20/2008--WOODWARD_GOVERNOR

related topics

{product, market, service}

{customer, product, revenue}

{tax, income, asset}

{property, intellectual, protect}

{cost, operation, labor}

{operation, natural, condition}

{operation, international, foreign}

{product, candidate, development}

{regulation, government, change}

{cost, contract, operation}

{acquisition, growth, future}

{cost, regulation, environmental}

{product, liability, claim}

{gas, price, oil}

{debt, indebtedness, cash}

{loss, insurance, financial}

If funding is not available to us when needed, or is available only on unfavorable terms, we may be unable to implement our business plans, complete acquisitions, or otherwise take advantage of business opportunities or respond to competitive pressures. Many of our expenses may not be able to be reduced in proportion to a sales shortfall. Suppliers may be unable to provide us with materials of sufficient quality or quantity required to meet our production needs at favorable prices or at all. Subcontractors may fail to perform contractual obligations. Our product development activities may not be successful or may be more costly than currently anticipated. Activities necessary to integrate acquisitions may result in costs in excess of current expectations or be less successful than anticipated. Certain restrictive covenants limit our ability to operate our business and to pursue our business strategies, and if we fail to comply with these covenants, it could result in an acceleration of payments for our outstanding indebtedness. Changes in the estimates of fair value of reporting units or of long-lived assets may result in future impairment charges, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. Future subsidiary results or changes in domestic or international tax statutes may change the amount of valuation allowances provided for deferred income tax assets. Manufacturing activities may result in future environmental liabilities. Our performance depends on continued access to a stable workforce and on favorable labor relations with our employees. Our intellectual property rights may not be sufficient to protect all our products or technologies. If third parties claim we are infringing their intellectual property rights, we could face significant litigation, indemnification, or licensing expenses or be prevented from marketing our products. Product liability claims, product recalls or other liabilities associated with the products and services we provide may force us to pay substantial damage awards and other expenses that could exceed our accruals and insurance coverage. Fines or sanctions resulting from the investigation by the DOJ regarding MPC pricing policies could have a material adverse effect on Woodward. Amounts accrued for contingencies may be inadequate to cover the amount of loss when the matters are ultimately resolved. Changes in the legal environment in which we operate may affect future sales and expenses. Operations and suppliers may be subject to physical and other risks that could disrupt production. We have significant investments in foreign entities and have significant sales and purchases in foreign denominated currencies creating exposure to foreign currency exchange rate fluctuations. Changes in assumptions may increase the amount of retirement pension and healthcare benefit obligations and related expense. Competitors may develop breakthrough technologies that are adopted by our customers. Industry consolidation trends could reduce our sales opportunities, decrease sales prices, and drive down demand for our product. Changes in competitor strategies may reduce the demand for our products. Unforeseen events may occur that significantly reduce commercial airline travel. Increasing emission standards that drive certain product sales may be eased or delayed.

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108312--11/20/2008--WOODWARD_GOVERNOR_CO