310142--3/15/2006--SENSIENT_TECHNOLOGIES_CORP

related topics
{cost, regulation, environmental}
{product, market, service}
{operation, natural, condition}
{product, liability, claim}
{personnel, key, retain}
{acquisition, growth, future}
{operation, international, foreign}
{cost, operation, labor}
{customer, product, revenue}
{competitive, industry, competition}
In some product lines, most of our sales are made to a relatively small number of customers; if we lose any of those customers, sales and operating results could decline. Many of our products are used in items for human consumption and contact. We may be subject to product liability claims and product recalls, which could negatively impact our profitability and corporate image. Consolidation has resulted in customers with increased buying power, which can affect our profitability. Intense competition may result in reduced sales and profitability. Our sales and profitability are affected by changing consumer preferences. If we do not maintain an appropriate cost structure, our profitability could decrease. Commodity and energy price increases or material shortages may reduce our profits. There are many laws and regulations applicable to our industries. Compliance with those requirements is costly to us and can affect our operations. Failure to comply could also be costly and disruptive. Environmental compliance may be costly to us. We may not successfully complete and integrate future acquisitions, which could adversely affect our operating results. Operating in foreign countries exposes us to increased risks, including foreign currency risks. We depend on certain key personnel, and the loss or retirement of these persons may harm our business. World events and natural disasters are beyond our control and could affect our results.

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