1113256--11/19/2009--ARVINMERITOR

related topics

{condition, economic, financial}

{cost, operation, labor}

{tax, income, asset}

{customer, product, revenue}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{property, intellectual, protect}

{operation, international, foreign}

{capital, credit, financial}

{regulation, change, law}

{cost, contract, operation}

{regulation, government, change}

{competitive, industry, competition}

{financial, litigation, operation}

{product, market, service}

The disposition of our remaining LVS businesses could involve substantial costs and be subject to risks and uncertainties. Continued production and sales volume declines in the commercial and automotive vehicle markets may adversely affect our results of operations, our ability to fund our liquidity requirements and our ability to meet our long-term commitments. We operate in an industry that is cyclical and that has periodically experienced significant year-to-year fluctuations in demand for vehicles; we also experience seasonal variations in demand for our products. We may be at risk in an upturn of not being able to meet demand. Disruptions in the financial markets are adversely impacting the availability and cost of credit which could negatively affect our business. Continued fluctuation in the prices of raw materials and transportation costs has adversely affected our business and, together with other factors, will continue to pose challenges to our financial results. We depend on large OEM customers, and loss of sales to these customers could have an adverse impact on our business. Escalating price pressures from customers may adversely affect our business. We operate in a highly competitive industry. Exchange rate fluctuations could adversely affect our financial condition and results of operations. A disruption in supply of raw materials or parts could impact our production and increase our costs. Work stoppages or similar difficulties could significantly disrupt our operations. Our international operations are subject to a number of risks. Our sales in the military vehicle market are subject to continued appropriations by Congress and reduced funding for defense procurement could result in terminated or delayed contracts with our customers who sell to the U.S. Government and adversely affect our ability to maintain our sales and results of operations. Our working capital requirements may negatively affect our liquidity and capital resources. Our liquidity, including our access to capital markets and financing, could be constrained by limitations in the overall credit market, our credit ratings, our ability to comply with financial covenants in our debt instruments, and our suppliers suspending normal trade credit terms on our purchases. A violation of the financial covenant in our senior secured credit facility could result in a default thereunder and could lead to an acceleration of our obligations under this facility and, potentially, other indebtedness. Our strategic initiatives may be unsuccessful, may take longer than anticipated, or may result in unanticipated costs. We are exposed to environmental, health and safety and product liabilities. We are exposed to asbestos litigation liability. We are exposed to the rising cost of pension and other postretirement benefits. Impairment in the carrying value of long-lived assets and goodwill could negatively affect our operating results and financial condition. The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition. Our unrecognized tax benefits recorded in accordance with FASB ASC Topic 740 could significantly change. Restriction on use of tax attributes from tax law ownership change Assertions against us or our customers relating to intellectual property rights could materially impact our business. We utilize a significant amount of intellectual property in our business. If we are unable to protect our intellectual property, our business could be adversely affected.

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1113256--11/19/2009--ARVINMERITOR_INC