34067--3/13/2009--DYNAMIC_MATERIALS

related topics

{cost, regulation, environmental}

{competitive, industry, competition}

{customer, product, revenue}

{acquisition, growth, future}

{condition, economic, financial}

{product, market, service}

{cost, operation, labor}

{cost, contract, operation}

{operation, international, foreign}

{personnel, key, retain}

{tax, income, asset}

{stock, price, operating}

{gas, price, oil}

Risk Factors Related to the Explosive Metalworking Industry We have seen a recent slow down in some of our markets and anticipate sales will decline during 2009. Our backlog figures may not accurately predict future sales. There is a limited availability of sites suitable for cladding operations. The use of explosives subjects us to additional regulation, and any accidents or injuries could subject us to significant liabilities. Our use of explosives is an inherently dangerous activity that could lead to temporary or permanent closure of our shooting sites. Certain raw materials we use are subject to supply shortages due to general economic conditions. Certain raw materials we use are subject to price increases due to general economic conditions. Risk Factors Related to DYNAwell Potential downturns in the oil and gas industry and related services industry could have a negative impact on DYNAwell's economic success. The manufacturing of explosives subjects DYNAwell to various environmental, health and safety laws. DYNAwell's continued economic success depends on remaining at the forefront of innovation in the perforating industry. Risk Factors Related to Dynamic Materials Corporation Weakness in the general global economy may adversely affect certain segments of our end market customers and reduce our sales and results of operations. Our operating results fluctuate from quarter to quarter. Customers have the right to change orders until products are completed. There is no assurance that we will continue to compete successfully against other clad, perforating, and welding companies. We are dependent on a relatively small number of customers for a significant portion of our net sales. Failure to attract and retain key personnel could adversely affect our current operations. Liabilities under environmental and safety laws could result in restrictions or prohibitions on our facilities, substantial civil or criminal liabilities, as well as the assessment of strict liability and/or joint and several liability. We are subject to extensive government regulation and failure to comply could subject us to future liabilities and could adversely affect our ability to conduct or to expand our business. Work stoppages and other labor relations matters may make it substantially more difficult or expensive for us to produce our products, which could result in decreased sales or increased costs, either of which would negatively impact our financial condition and results of operations. As we regularly test the value of goodwill associated with our recent acquisitions, economic conditions may lead to a impairment of such goodwill. We are exposed to potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of many of our operating subsidiaries. The unsuccessful integration of a business we acquire could have a material adverse effect on operating results.

Full 10-K form ▸

34067--3/13/2009--DYNAMIC_MATERIALS_CORP