1263074--3/15/2007--PORTEC_RAIL_PRODUCTS

related topics

{condition, economic, financial}

{competitive, industry, competition}

{cost, contract, operation}

{personnel, key, retain}

{customer, product, revenue}

{operation, international, foreign}

{tax, income, asset}

{product, market, service}

If we lose key personnel or qualified technical staff, our ability to manage the day-to-day aspects of our business will be adversely affected. As we expand our sales of products and services internationally, we will increase our exposure to international economic and political risks. We have a significant pension liability, which negatively impacts our retained earnings and may significantly increase our funding requirements under ERISA and other applicable regulations. We may be required to record a significant charge to earnings if our goodwill or intangible assets become impaired. Risk Factors Relating to Our Industry Our sales can fluctuate from quarter to quarter due to seasonal factors or our railroad customers capital spending programs. A decrease in rail traffic or rail capital expenditures due to weakness in the general economy or competitive factors could adversely affect our operating results. Competition and innovation by our competitors may adversely affect our business. New or existing competitors may import track component products for sale in the North American market at reduced prices. Further consolidation of the railroad industry may adversely affect our business.

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1263074--3/15/2007--PORTEC_RAIL_PRODUCTS_INC