1378670--4/28/2008--RathGibson

related topics

{cost, regulation, environmental}

{debt, indebtedness, cash}

{cost, operation, labor}

{operation, natural, condition}

{product, liability, claim}

{property, intellectual, protect}

{system, service, information}

{regulation, change, law}

{personnel, key, retain}

{competitive, industry, competition}

{condition, economic, financial}

{stock, price, operating}

{product, market, service}

{gas, price, oil}

{acquisition, growth, future}

{customer, product, revenue}

{operation, international, foreign}

General economic and business conditions may produce significant fluctuations in demand for the Company s products. The Company s industry is highly competitive. Volatility in energy prices and/or the prices of energy products could reduce demand for the Company s stainless steel and specialty alloy tubular products, which could cause its sales to decrease. Raw material costs can affect the Company s profitability. The Company s ability to remain current with changes in manufacturing technology can affect its business. A material percentage of the Company s sales are to foreign customers, which presents additional risks. The Company depends on a few suppliers for a significant portion of its steel, specialty alloys, titanium, hydrogen and argon, and a loss of one or more significant suppliers could adversely affect the Company s ability to obtain basic raw materials. Energy resources markets are subject to conditions that create uncertainty in the prices and availability of energy resources the Company relies upon. Loss of significant customers and customer work stoppages can adversely affect the Company s business. The Company s operations are subject to business interruptions and casualty losses. The Company may be subject to litigation, including product liability claims, that could have a material adverse effect on its business. Compliance with and changes in environmental, health and safety laws regulating the operation of the Company s business could increase the costs of producing products and expose the Company to environmental claims. Labor shortages and increased labor costs could negatively impact the Company s business. The Company relies on information technology systems to manage numerous aspects of its business and a disruption of these systems could adversely affect the Company s business. Loss of third-party transportation providers upon whom the Company depends or conditions negatively affecting the transportation industry could increase costs or cause a disruption in operations. The failure to enforce and maintain the Company s intellectual property rights could adversely affect the ability to maintain brand awareness. The Company may make acquisitions, which present additional risks. The Company depends on the services of key executives, the loss of whom could materially harm its business. Our controlling stockholder may take actions that conflict with the interests of the Company s lenders. The requirements of complying with Section 404 of the Sarbanes-Oxley Act may strain the Company s resources and distract management. The Company s substantial indebtedness could adversely affect its financial health. To service the Company s indebtedness and other obligations, the Company will require a significant amount of cash. The Company s ability to generate cash depends on many factors beyond its control. The agreements governing the Company s indebtedness impose significant operating and financial restrictions on it, which may prevent the Company from capitalizing on business opportunities and taking some actions

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1378670--4/28/2008--RathGibson_Inc