18169--3/27/2009--DOLE_FOOD_CO_INC

related topics
{debt, indebtedness, cash}
{cost, regulation, environmental}
{operation, international, foreign}
{condition, economic, financial}
{operation, natural, condition}
{competitive, industry, competition}
{product, liability, claim}
{investment, property, distribution}
{regulation, change, law}
Our business is highly competitive and we cannot assure you that we will maintain our current market share. Our earnings are sensitive to fluctuations in market prices and demand for our products. Our earnings are subject to seasonal variability. Currency exchange fluctuations may impact the results of our operations. Increases in commodity or raw product costs, such as fuel, paper, plastics and resins, could adversely affect our operating results. We face risks related to our former use of the pesticide DBCP. Our substantial indebtedness could adversely affect our operations, including our ability to perform our obligations under the notes and our other debt obligations. Restrictive covenants in our debt instruments restrict or prohibit our ability to engage in or enter into a variety of transactions, which could adversely restrict our financial and operating flexibility and subject us to other risks. We may be unable to generate sufficient cash flow to service our debt obligations. A breach of a covenant or other provision or failure to pay under our parent s loan agreement may result in a default under our senior secured credit facilities. We may not have sufficient funds, or be permitted by our senior secured credit facilities, to repurchase our senior notes due 2010, our senior notes due 2011, our debentures due 2013 and/or our senior secured notes due 2014 upon a change of control. Some of our debt, including the borrowings under our senior secured credit facilities, is based on variable rates of interest, which could result in higher interest expenses in the event of an increase in interest rates. The financing arrangements for the going-private merger transactions in 2003 may increase our exposure to tax liability. We face other risks in connection with our international operations. We may be required to pay significant penalties under European antitrust laws. Terrorism and the uncertainty of war may have a material adverse effect on our operating results. Our worldwide operations and products are highly regulated in the areas of food safety and protection of human health and the environment. We are subject to the risk of product liability claims.

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