31107--3/11/2009--EASTERN_CO

related topics
{acquisition, growth, future}
{tax, income, asset}
{cost, regulation, environmental}
{product, market, service}
{financial, litigation, operation}
{operation, international, foreign}
{interest, director, officer}
{cost, operation, labor}
{control, financial, internal}
{stock, price, share}
{stock, price, operating}
{condition, economic, financial}
{competitive, industry, competition}
The Company s business is subject to risks associated with conducting business overseas. ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Increases in the price or reduced availability of raw materials. Increased competition in the markets the Company services could impact revenues and earnings. The Company is required to evaluate its internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002. The inability to identify or complete acquisitions could limit future growth. Demand for new products and the inability to develop and introduce new competitive products at favorable profit margins could adversely affect the Company s performance and prospects for future growth, and the Company would not be positioned to maintain current levels of revenues and earnings. The Company could be subject to litigation which could have a material impact on the Company s business, financial condition or results of operations. The Company could be subject to additional tax liabilities. The Company s goodwill or indefinite-lived intangible assets may become impaired, which could require a significant charge to earnings to be recognized. The Company may need additional capital in the future, and it may not be available on acceptable terms, if at all. The Company s stock price is highly volatile due to low float, which is the number of shares of the Company s common stock that are outstanding and available for trading by the public. The Company may not be able to reach acceptable terms for contracts negotiated with its labor unions and be subject to work stoppages or disruption of production. Deterioration in the creditworthiness of several major customers could have a material impact on the Company s business, financial condition or results of operations. The Company s operating results may fluctuate, which makes the results of operations difficult to predict and could cause the results to fall short of expectations. New or existing U.S. or foreign laws could subject the Company to claims or otherwise impact the Company s business, financial condition or results of operations.

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