108312--11/29/2007--WOODWARD_GOVERNOR

related topics

{customer, product, revenue}

{operation, international, foreign}

{product, market, service}

{tax, income, asset}

{property, intellectual, protect}

{cost, operation, labor}

{cost, contract, operation}

{cost, regulation, environmental}

{product, liability, claim}

{loss, insurance, financial}

{product, candidate, development}

Sales may not achieve the level forecast. 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 or at favorable prices. Product development activities may not be successful or may be more costly than currently anticipated. Activities necessary to integrate an acquisition may result in costs in excess of current expectations or be less successful than anticipated. Changes in the estimates of fair value of reporting units or of long-lived assets may result in future impairment charges. Future subsidiary results 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 suffer 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 coverages. 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 outside the United States may be subject to additional risks. Changes in foreign currency exchange rates may decrease margins associated with our sales. 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. Changes in competitor strategies may reduce the demand for our products.

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108312--11/29/2007--WOODWARD_GOVERNOR_CO