108516--7/30/2009--WORTHINGTON_INDUSTRIES

related topics

{customer, product, revenue}

{condition, economic, financial}

{cost, regulation, environmental}

{investment, property, distribution}

{capital, credit, financial}

{loss, insurance, financial}

{system, service, information}

{debt, indebtedness, cash}

{operation, international, foreign}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, change, law}

The current global recession has adversely affected and is likely to continue to adversely affect our business and our industries, as well as the industries of many of our customers and suppliers. Continued volatility in the United States and worldwide capital and credit markets has impacted and is likely to continue to significantly impact our end markets and result in continued negative impacts on demand, increased credit and collection risks and other adverse effects on our business. The construction and automotive industries account for a significant portion of our net sales, and reductions in demand from these industries have adversely impacted and are likely to continue to adversely affect our business. Financial difficulties and bankruptcy filings by the Company s customers could have an adverse impact on our business. The loss of significant volume from key customers could adversely affect us Raw Material Pricing and Availability The costs of manufacturing our products and the ability to supply our customers could be negatively impacted if we experience interruptions in deliveries of needed raw materials or supplies. Our future operating results may be affected by fluctuations in raw material prices. Our business could be harmed if we fail to maintain proper inventory levels. Our business is highly competitive, and increased competition could negatively impact our financial results. In certain applications, steel competes with other materials, such as aluminum (particularly in the automobile industry), cement and wood (particularly in the construction industry), composites, glass and plastic. The availability and cost of freight and energy, such as electricity, natural gas and diesel fuel, is important in the manufacture and transport of our products. We are subject to information system security risks and systems integration issues that could disrupt our internal operations. Disruptions to our business or the business of our customers or suppliers, could adversely impact our operations and financial results. Economic, political and other risks associated with foreign operations could adversely affect our international financial results. A change in the relationship between the members of our joint ventures may have an adverse effect on that joint venture We may not be able to consummate, manage and integrate future acquisitions successfully. We are required to make accounting and tax-related estimates and judgments in preparing our consolidated financial statements. Adverse claims experience, to the extent not covered by insurance, may have an adverse effect on our financial results. Our principal shareholder may have the ability to exert significant influence in matters requiring a shareholder vote and could delay, deter or prevent a change in control of Worthington Industries. Rating agencies may downgrade our credit ratings, which could make it more difficult for us to raise capital and it could increase our financing costs. Should we be required to raise capital in the current financing environment, potential outcomes might include higher borrowing costs, less available capital, more stringent terms and tighter covenants, or in extreme conditions, an inability to raise capital. Continued or enhanced weakness in the economy, our markets, and our results could result in future asset impairments, which would reduce our reported earnings and net worth.

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108516--7/30/2009--WORTHINGTON_INDUSTRIES_INC