1366455--2/25/2008--Tube_City_IMS

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{cost, regulation, environmental}

{acquisition, growth, future}

{cost, contract, operation}

{debt, indebtedness, cash}

{interest, director, officer}

{condition, economic, financial}

{cost, operation, labor}

{competitive, industry, competition}

{operation, natural, condition}

{customer, product, revenue}

{loss, insurance, financial}

{operation, international, foreign}

{personnel, key, retain}

{gas, price, oil}

{loan, real, estate}

Risks Related to Our Business A decrease in production of steel by our customers as a result of economic or other factors can have a negative impact on our results of operations. Our historical financial information does not reflect what our actual results of operations and financial condition would have been had we been a combined company for the periods presented, and thus these results are not indicative of our future operating performance. We rely on a number of significant customers and contracts, the loss of any of which could have a material adverse effect on our results of operations. Some of our customers could experience financial difficulties, which could have a negative impact on our results of operations. We are subject to concentrated credit risk. Amounts included in our backlog may not result in actual revenue or translate into profits. We face significant competition in the markets we serve. We are exposed to work stoppages and increased labor costs resulting from labor union activity among our employees and those of our customers. Increases in energy prices could increase our operating costs and reduce profitability. Some of our operations are subject to market price and inventory risk. We expend significant funds and resources to integrate ourselves into our customers sites, but may not receive significant profits from such efforts for several years. Our business is subject to environmental regulations that could expose us to liability, increase our cost of operations and otherwise have a material adverse effect on our results of operations. Our business involves a number of operating risks, and our failure to properly manage these risks could result in liabilities not fully covered by insurance and loss of future business and could have a material adverse effect on results of operations. Equipment failure, adverse weather conditions and similar events could cause business interruptions that have a material adverse effect on our results of operations. If we fail to make accurate estimates in bidding for long-term contracts, it could adversely affect our profitability. We may be subject to potential environmental and other liabilities associated with former businesses. The future success of our business depends on maintaining existing and attracting new key personnel. Certain of our operations are dependent on access to freight transportation. We may not be able to sustain our competitive advantages in the future. The expansion of our international operations will subject us to a variety of risks. We are subject to acquisition risks. If we are not successful in integrating companies that we acquire or have acquired, we may not achieve the expected benefits and our profitability could suffer. In addition, the cost of evaluating and pursuing acquisitions may not result in a corresponding benefit. Our pension and other post-employment benefit plans are currently underfunded or unfunded and we have to make cash payments, which may reduce the cash available for our business. The terms of our new credit facilities may restrict our current and future operations, particularly our ability to finance additional growth or take some strategic or operational actions. An increase in our debt service obligations may adversely affect our earnings and available cash.

Full 10-K form ▸

1366455--2/25/2008--Tube_City_IMS_CORP