1319048--7/26/2007--Chaparral_Steel

related topics

{tax, income, asset}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{competitive, industry, competition}

{condition, economic, financial}

{gas, price, oil}

{operation, natural, condition}

{property, intellectual, protect}

{provision, law, control}

{acquisition, growth, future}

{operation, international, foreign}

Risks Related to Our Spin-Off from TXI The spin-off could result in significant tax liability. Our ability to engage in acquisitions and other strategic transactions is subject to limitations because we agreed to certain restrictions to comply with United States federal income tax requirements for a tax-free spin-off. We may be required to satisfy certain indemnification obligations to TXI or may not be able to collect on indemnification rights from TXI. Risks Related to Our Company We face significant competition, and some of our competitors have resources in excess of our available resources. The availability and pricing of raw materials and energy could lower our results of operations and harm our financial condition. Our debt could adversely affect our cash flow available to fund our business needs and have other consequences adverse to our business. The agreements governing our debt contain various covenants restricting our ability to prepay or repurchase our debt, otherwise limit our discretion in the operation of our business and could lead to acceleration of debt. We may incur substantial expenditures to comply with environmental laws which may adversely affect our results of operations and harm our financial condition. Unexpected equipment failures, catastrophic events and scheduled maintenance may lead to production curtailments or shutdowns. Implementation of our growth strategy has certain risks. If our products and methods and the products and methods we license infringe on the intellectual property rights of others, our ability to compete in the market may be harmed. Our change-in-control provisions could make it more difficult for a third party to acquire us, and discourage a takeover, and may adversely affect our stockholders. Risks Related to our Industry Our business is sensitive to economic cycles. Excess global capacity and the availability of competitive substitute materials have, at times, resulted in intense competition and may, in the future, cause downward pressure on prices. In recent years, imports of steel into the United States have adversely affected, and may again adversely affect, U.S. steel prices, which would impact our sales, margins and profitability.

Full 10-K form ▸

1319048--7/26/2007--Chaparral_Steel_CO