1158062--5/30/2008--RED_D_ARC_INC

related topics
{cost, regulation, environmental}
{acquisition, growth, future}
{operation, natural, condition}
{condition, economic, financial}
{competitive, industry, competition}
{loss, insurance, financial}
{personnel, key, retain}
{product, liability, claim}
{cost, operation, labor}
{financial, litigation, operation}
{gas, price, oil}
Demand for our products is affected by general economic conditions and by the cyclical nature of many of the industries we serve, which can cause significant fluctuations in our sales and results. We may not be successful in generating market leading sales growth and in controlling expenses, which could limit our ability to achieve our expected growth. Increases in product and energy costs could reduce our profitability. Our financial results may be adversely affected by gas supply disruptions/constraints We may not be successful in completing acquisitions, which may adversely affect our growth and operating results. We may not be successful in integrating our past and future acquisitions and achieving intended benefits and synergies. Acquisitions may have a material adverse effect on our business if we are required to assume debt and other liabilities of the acquired business. We depend on our key personnel to manage our business effectively and they may be difficult to replace. We are subject to litigation risk as a result of the nature of our business, which may have a material adverse effect on our business. We have established insurance programs with significant deductibles and maximum coverage limits which could result in the recognition of significant losses. Catastrophic events may disrupt our business and adversely affect our operating results. We are subject to environmental, health and safety regulations which could subject us to liability and we will have ongoing environmental costs. We operate in a highly competitive environment and such competition could negatively impact us.

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