1289308--6/14/2006--EnerSys

related topics

{system, service, information}

{cost, operation, labor}

{operation, international, foreign}

{cost, regulation, environmental}

{property, intellectual, protect}

{acquisition, growth, future}

{condition, economic, financial}

{product, market, service}

{competitive, industry, competition}

{debt, indebtedness, cash}

We operate in an extremely competitive industry and are subject to continual pricing pressure. Cyclical industry conditions of our customers have adversely affected and may continue to adversely affect our results of operations. Our raw materials costs are volatile and expose us to significant movements in our product costs. Our operations expose us to the risk of material environmental, health and safety liabilities, costs, and litigation. Recent legislation in the European Union could adversely affect our results of operations. We are exposed to exchange rate risks, and our net income and financial condition may suffer due to currency translations. Our international operations may be adversely affected by actions taken by foreign governments or other forces or events over which we may have no control. Our failure to introduce new products and product enhancements and broad market acceptance of new technologies introduced by our competitors could adversely affect our business. We may not be able adequately to protect our proprietary intellectual property and technology. We may lose our right to use the Exide trademark. Relocation of our customers operations could adversely affect our business. We may fail to implement our cost reduction initiatives successfully and improve our profitability. Quality problems with our products could harm our reputation and erode our competitive position. We offer our products under a variety of brand names, the protection of which is important to our reputation for quality in the consumer marketplace. We may fail to implement our plans to make acquisitions. Any acquisitions that we complete may dilute your ownership interest in EnerSys, may have adverse effects on our financial condition and results of operations and may cause unanticipated liabilities. The failure of critical computer systems could seriously affect our sales and operations. Our significant indebtedness could adversely affect our financial condition.

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