1307954--2/26/2009--Huntsman

related topics

{cost, regulation, environmental}

{stock, price, share}

{debt, indebtedness, cash}

{stock, price, operating}

{condition, economic, financial}

{customer, product, revenue}

{capital, credit, financial}

{provision, law, control}

{operation, natural, condition}

{acquisition, growth, future}

{control, financial, internal}

{regulation, change, law}

{cost, operation, labor}

{operation, international, foreign}

{competitive, industry, competition}

{personnel, key, retain}

{property, intellectual, protect}

{loss, insurance, financial}

RISKS RELATED TO OUR BUSINESS We have a history of losses and may incur losses in the future. Our industry is affected by global economic factors including risks associated with a recession and our customers' access to credit. Significant price volatility or interruptions in supply of our raw materials may result in increased costs that we may be unable to pass on to our customers, which could reduce our profitability. We are subject to the risk of loss resulting from nonpayment or nonperformance by our customers. Our available cash and access to additional capital may be limited by our significant leverage, which could restrict our ability to grow our businesses. We may not be able to obtain funding because of the deterioration of the credit and capital markets. This may hinder or prevent us from meeting our future capital needs and from refinancing our existing indebtedness. A downgrade in the ratings of the securities of our Company or our subsidiaries could result in increased interest and other financial expenses related to future borrowings of our Company or our subsidiaries and could restrict our access to additional capital or trade credit. Loss of key members of our management could disrupt our business. Uncertainties following the termination of the Merger may result in a loss of employees and may otherwise materially adversely affect our business and operations. Natural or other disasters could disrupt our business and result in loss of revenue or in higher expenses. Our results of operations may be adversely affected by fluctuations in currency exchange rates and international business risks. Demand for many of our products is cyclical, and we may experience depressed market conditions for such products. The industries in which we compete are highly competitive, and we may not be able to compete effectively with our competitors that have greater financial resources, which could have a material adverse effect on our business, results of operations and financial condition. Our operations involve risks that may increase our operating costs, which could reduce our profitability. Financial difficulties and related problems at our vendors, suppliers and other business partners could result in a disruption in our operations and have a material adverse effect on our business. We are subject to many environmental and safety regulations that may result in unanticipated costs or liabilities, which could reduce our profitability. Existing or future litigation or legislative initiatives restricting the use of MTBE in gasoline may subject us or our products to environmental liability, materially reduce our sales and/or materially increase our costs. Our business is dependent on our intellectual property. If our patents are declared invalid or our trade secrets become known to our competitors, our ability to compete may be adversely affected. Future acquisitions, partnerships and joint ventures may require significant resources and/or result in unanticipated adverse consequences that could have a material adverse effect on our business, results of operations and financial condition. If our subsidiaries do not make sufficient distributions to us, then we will not be able to make payment on our debts. Terrorist attacks, such as the attacks that occurred on September 11, 2001, the continuing military action in Iraq, general instability in various OPEC member and other energy-producing nations, the threat of other attacks or acts of war in the U.S. and abroad and increased security regulations related to our industry could adversely affect our business. RISKS RELATED TO OUR COMMON STOCK Our stock price has been and may continue to be subject to large fluctuations. Shares available for future sale may cause our common stock price to decline, which may negatively impact the trading price of our common stock. We have the ability to issue additional equity securities, which would lead to further dilution of our issued and outstanding common stock. Certain provisions contained in our certificate of incorporation and bylaws could discourage a takeover attempt, which may reduce or eliminate the likelihood of a change of control transaction and, therefore, limit your ability to sell our common stock at a price higher than the current market value. The declaration of dividends by our Company is subject to the discretion of our Board of Directors and there can be no assurance that we will continue to pay dividends. Jon M. Huntsman, Peter R. Huntsman and the Huntsman family, through HMP Equity Trust and other of their affiliates, may be deemed to control approximately 30% of our outstanding common stock, and their interests may conflict with those of other stockholders or our Company.

Full 10-K form ▸

1307954--2/26/2009--Huntsman_CORP