1084230--3/6/2006--PEPSIAMERICAS_INC/IL/

related topics
{cost, regulation, environmental}
{operation, international, foreign}
{cost, operation, labor}
{capital, credit, financial}
{property, intellectual, protect}
{financial, litigation, operation}
{regulation, change, law}
{customer, product, revenue}
Our operating results may fluctuate based on changes in marketplace conditions, especially customer and competitor consolidation, changes in customer preferences, including our customers' shift from carbonated soft drinks to non-carbonated beverages, and unfavorable weather conditions in the territories in which we operate. An increase in the price of raw materials or a decrease in the availability of raw materials, including aluminum, resin, sweeteners and fuel, could adversely affect our financial condition. The successful operation of our business depends upon our relationship with PepsiCo. A negative change in our credit rating or the availability of capital could impact borrowing costs and financial results. The cost to remediate environmental concerns associated with previously owned subsidiaries could be materially different than our estimates. We cannot predict the outcome of legal proceedings and an adverse determination could negatively impact our financial results. Increases in the cost of compliance with applicable regulations, including those governing the production, packaging, quality, labeling and distribution of beverage products, could negatively impact our financial results. A strike or work stoppage by our union employees, which represent approximately one-third of our workforce, could disrupt our business. Because our international operations are conducted under multiple local currencies, our operating results experience foreign currency fluctuations. Changes in tax laws or in the tax status of our international operations could increase our tax liability and negatively impact our financial results. A change in the financial stability of our third-party distributors in Central Europe could disrupt our international business.

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