1113256--11/21/2008--ARVINMERITOR

related topics

{cost, operation, labor}

{tax, income, asset}

{cost, regulation, environmental}

{operation, international, foreign}

{capital, credit, financial}

{condition, economic, financial}

{customer, product, revenue}

{cost, contract, operation}

{regulation, change, law}

{debt, indebtedness, cash}

{competitive, industry, competition}

{property, intellectual, protect}

{financial, litigation, operation}

{product, market, service}

Disruptions in the financial markets are adversely impacting the availability and cost of credit which could negatively affect our business. Financial difficulties facing other automotive companies may have an adverse impact on us. We may not be able to complete the sale of our LVS business (excluding the Wheels business) Continued escalation in the prices of raw materials and transportation costs could adversely affect our business and, together with other factors, will continue to pose challenges to our financial results. 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 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 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 our limitations in the overall credit market, credit ratings, our ability to comply with financial covenants in our debt instruments, and our suppliers suspending normal trade credit terms on our purchases. 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, and are currently involved in litigation the outcome of which could further increase these costs. Impairment in the carrying value of long-lived assets and goodwill could negatively affect our operating results and financial condition. The value of our U.S. deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition. Our expected annual effective tax rate could be volatile and materially change as a result of changes in mix of earnings and other factors. Our unrecognized tax benefits related to the adoption of Financial Accounting Standards Board Interpretation No. 48 could significantly change. Developments or assertions by or against us relating to intellectual property rights could materially impact our business.

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1113256--11/21/2008--ARVINMERITOR_INC