20629--6/2/2008--CSS_INDUSTRIES

related topics

{operation, international, foreign}

{condition, economic, financial}

{customer, product, revenue}

{operation, natural, condition}

{cost, operation, labor}

{property, intellectual, protect}

{personnel, key, retain}

{acquisition, growth, future}

{cost, regulation, environmental}

{capital, credit, financial}

We rely on a few mass market retailers, warehouse clubs and national drug store chains for a significant portion of our sales. The loss of sales, or a significant reduction of sales, to one or more of our large customers may adversely affect our business, results of operations and financial condition. Past and future consolidation within the retail sector also may lead to reduced profit margins, which may adversely affect our business, results of operations and financial condition. Increases in raw material and energy costs, resulting from general economic conditions, acts of nature, such as hurricanes, earthquakes or influenza pandemics, or other factors, may raise our cost of goods sold and adversely affect our business, results of operations and financial condition. Risks associated with our use of foreign suppliers may adversely affect our business, results of operations and financial condition. Increased overseas sourcing by our competitors and our customers may reduce our market share and profit margins, adversely affecting our business, results of operations and financial condition. Bankruptcy of our key customers may increase our exposure to losses from bad debts, and may adversely affect our business, results of operations and financial condition. Our business, results of operations and financial condition may be adversely affected by volatility in the demand for our products. Our business, results of operations and financial condition may be adversely affected if we are unable to hire and retain sufficient qualified personnel. Our business, results of operations and financial condition may be adversely affected if we fail to extend or renegotiate our collective bargaining contracts with our labor unions as they expire from time to time, or if our unionized employees were to engage in a strike, or other work stoppage. Our acquisition strategy involves risks, and difficulties in integrating potential acquisitions may adversely affect our business, results of operations and financial condition. Our inability to protect our intellectual property rights, or infringement claims asserted against us by others, may adversely affect our business, results of operations and financial condition. Various laws and governmental regulations applicable to a manufacturer or distributor of consumer products may adversely affect our business, results of operations and financial condition.

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20629--6/2/2008--CSS_INDUSTRIES_INC