29915--2/17/2006--DOW_CHEMICAL_CO_/DE/

related topics
{cost, regulation, environmental}
{condition, economic, financial}
{financial, litigation, operation}
{competitive, industry, competition}
{gas, price, oil}
{property, intellectual, protect}
{customer, product, revenue}
{product, market, service}
Rising and volatile purchased feedstock and energy costs increase Dow's operating costs and add variability to earnings. The earnings generated by the Company's basic chemical and basic plastic products will vary from period to period based in part on the balance of supply relative to demand within the industry. The businesses of many of Dow's customers are cyclical in nature and sensitive to changes in general economic conditions. If key suppliers are unable to provide the raw materials required for production, Dow may not be able to obtain the raw materials from other sources on as favorable terms. The Company experiences substantial competition in each of the operating segments and geographic areas in which it operates. Actual or alleged violations of environmental laws or permit requirements could result in restrictions or prohibitions on plant operations, substantial civil or criminal sanctions, as well as the assessment of strict liability and/or joint and several liability. The Company is party to a number of claims and lawsuits arising out of the normal course of business with respect to commercial matters, including product liability, governmental regulation and other actions. Local, state and federal governments have begun a regulatory process that could lead to new regulations impacting the security of chemical plant locations and the transportation of hazardous chemicals. Failure to develop new products could make the Company less competitive. Failure to protect the Company's intellectual property could negatively affect its future performance and growth. Weather-related matters could impact the Company's results of operations. The Company's business operations give rise to market risk exposure.

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