1122976--3/15/2006--POLYONE_CORP

related topics
{cost, regulation, environmental}
{cost, operation, labor}
{debt, indebtedness, cash}
{tax, income, asset}
{cost, contract, operation}
{condition, economic, financial}
{operation, international, foreign}
{system, service, information}
{competitive, industry, competition}
{investment, property, distribution}
Increased raw material and energy costs could reduce our income. Our sales and operating results are sensitive to global economic conditions and cyclicality, and could be adversely affected during economic downturns. Our participation in joint ventures may adversely affect our results of operations. A major failure of our information systems could harm our business. Our manufacturing operations are subject to hazards and other risks associated with polymer production and the related storage and transportation of raw materials, products and wastes. Extensive environmental, health and safety laws and regulations impact our operations and assets, and compliance with these regulations could adversely affect our results of operations. We face competition from other polymer and chemical companies, which could adversely affect our sales and financial condition. Our level of indebtedness may adversely affect our business. Because our operations are conducted worldwide, they are affected by risks of doing business abroad. Other increases in operating costs could affect our profitability. We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations. Lower investment performance by our pension plan assets may require us to increase our pension liability and expense, which may also lead us to accelerate funding of our pension obligations and divert funds from other potential uses. An inability to collect the remaining balances owed to us from purchasers of our former businesses could affect our financial position. We have some employee benefit plans that are self-insured. Our business depends upon good relations with our employees. The guarantee of our SunBelt joint venture s debt could result in our having to pay the outstanding principal and interest if SunBelt cannot make these payments when due.

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