1307954--3/17/2006--Huntsman

related topics

{cost, regulation, environmental}

{control, financial, internal}

{operation, natural, condition}

{debt, indebtedness, cash}

{acquisition, growth, future}

{competitive, industry, competition}

{operation, international, foreign}

{regulation, change, law}

{stock, price, operating}

{property, intellectual, protect}

{provision, law, control}

{personnel, key, retain}

{condition, economic, financial}

{capital, credit, financial}

We have a history of losses and may incur losses in the future, which could materially reduce the market price of our securities. Demand for many of our products is cyclical, and we may experience prolonged depressed market conditions for such products. 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. Natural or other disasters could disrupt our business and result in loss of revenue or in higher expenses. Our available cash and access to additional capital may be limited by our substantial leverage, which could restrict our ability to grow our businesses. A downgrade in the ratings of the debt securities of our subsidiaries could result in increased interest and other financial expenses related to future borrowings of our subsidiaries and could restrict our access to additional capital or trade credit. 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 results of operations may be adversely affected by fluctuations in currency exchange rates and international business risks. 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 reduce the trading price of our securities. Our operations involve risks that may increase our operating costs, which could reduce our profitability. We are subject to many environmental and safety regulations that may result in unanticipated costs or liabilities, which could reduce our profitability. We can provide no assurance that our internal control over our financial reporting will be effective when Section 404 of the Sarbanes-Oxley Act of 2002 becomes applicable to us. We are a holding company, with no revenue generating operations of our own. We depend on the performance of our subsidiaries and their ability to make distributions to us. 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 impaired. Loss of key members of our management could disrupt our business. Terrorist attacks, such as the attacks that occurred on September 11, 2001, the continuing military action in Iraq, general instability in various OPEC member 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. Future acquisitions, partnerships and joint ventures may require significant resources and/or result in significant unanticipated losses, costs or liabilities. We are indirectly controlled by the Huntsman family and MatlinPatterson, whose interests may conflict with those of our Company or our other stockholders, and other stockholders' voting power may be limited. HMP Equity Trust's controlling position and 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, your ability to sell your shares at a premium.

Full 10-K form ▸

1307954--3/17/2006--Huntsman_CORP