313716--3/16/2009--HARDINGE

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{condition, economic, financial}

{operation, international, foreign}

{product, market, service}

{personnel, key, retain}

{capital, credit, financial}

{operation, natural, condition}

{control, financial, internal}

{competitive, industry, competition}

{product, liability, claim}

{loss, insurance, financial}

{acquisition, growth, future}

{cost, contract, operation}

Our customers' activity levels and spending for our products and services have been impacted by the current global economic conditions, especially deterioration in the credit markets. Changes in general economic conditions and the cyclical nature of our business could harm our operating results. Our competitive position and prospects for growth may be diminished if we are unable to develop and introduce new and enhanced products on a timely basis that are accepted in the market. We rely on a single supplier or a limited number of suppliers to obtain certain components, sub-assemblies, assemblies and products. The loss of any of these suppliers may cause us to incur additional costs, result in delays in manufacturing and delivering our products or cause us to carry excess or obsolete inventory. Our business, financial condition and results of operations could be adversely affected by the political and economic conditions of the countries in which we conduct business and other factors related to our international operations. We may face trade barriers that could have a material adverse effect on our results of operations and result in a loss of customers or suppliers. Our business is highly competitive, and increased competition could reduce our sales, earnings and profitability. Acquisitions could disrupt our operations and harm our operating results. If we are unable to access additional capital on favorable terms, our liquidity, business and results of operations could be adversely affected. We are subject to significant foreign exchange and currency risks that could adversely affect our operations and our ability to reinvest earnings from operations. Prices of some raw materials, especially steel and iron, fluctuate, which can adversely affect our sales, costs, and profitability. Our quarterly results may fluctuate based on customer delivery requirements. Our expenditures for post-retirement pension obligations could be materially higher than we have predicted if our underlying assumptions prove to be incorrect or we are required to use different assumptions. If we are unable to attract and retain skilled employees to work at our manufacturing facilities our operations and growth prospects would be adversely impacted. Due to future technological changes, changes in market demand, or changes in market expectations, portions of our inventory may become obsolete or excessive. Major changes in the economic situation of our customer base could require us to write off significant parts of our receivables from customers. If we suffer loss to our factories, facilities or distribution system due to catastrophe, our operations could be seriously harmed. We rely in part on independent distributors and the loss of these distributors could adversely affect our business. We rely on estimated forecasts of our customers' needs and inaccuracies in such forecasts could adversely affect our business. We could face potential product liability claims relating to products we manufacture, which could result in us having to expend significant time and expense to defend these claims and to pay material settlement amounts. Current employment laws or changes in employment laws could increase our costs and may adversely affect our business. We are subject to environmental laws that could impose significant costs on us and the failure to comply with such laws could subject us to sanctions and material fines and expenses. The loss of current members of our senior management team and other key personnel may adversely affect our operating results. If we fail to maintain an effective system of internal controls, we may not be able to report our financial results accurately or prevent fraud.

Full 10-K form ▸

313716--3/16/2009--HARDINGE_INC