35214--3/11/2009--FERRO

related topics

{cost, operation, labor}

{tax, income, asset}

{cost, contract, operation}

{cost, regulation, environmental}

{condition, economic, financial}

{product, market, service}

{product, liability, claim}

{operation, international, foreign}

{financial, litigation, operation}

{customer, product, revenue}

{stock, price, share}

{investment, property, distribution}

{control, financial, internal}

{competitive, industry, competition}

We depend on external financial resources, and the current economic environment and credit market uncertainty could interrupt our access to capital markets, borrowings, or financial transactions to hedge certain risks, which could adversely affect our financial condition. Interest rates on some of our borrowings are variable, and our borrowing costs could be affected adversely by interest rate increases. Many of our assets are encumbered by liens that have been granted to lenders, and those liens affect our flexibility to dispose of property and businesses. We have significant deferred tax assets, and our ability to utilize these assets will depend on our future performance. Noncompliance with NYSE rules could result in the delisting of our common stock from the NYSE. We depend on reliable sources of energy and raw materials, including petroleum-based materials and other supplies, at a reasonable cost, but the availability of these materials and supplies could be interrupted and/or their prices could escalate and adversely affect our sales and profitability. The markets for our products are highly competitive and subject to intense price competition, and that could adversely affect our sales and earnings performance. We strive to improve operating margins through sales growth, price increases, productivity gains, improved purchasing techniques and restructuring activities, but we may not achieve the desired improvements. The global scope of our operations exposes us to risks related to currency conversion rates and changing economic, social and political conditions around the world. We have a growing presence in the Asia-Pacific region where it can be difficult for a U.S.-based company, such as Ferro, to compete lawfully with local competitors. Regulatory authorities in the U.S., European Union and elsewhere are taking a much more aggressive approach to regulating hazardous materials, and those regulations could affect sales of our products. Our operations are subject to operating hazards and, as a result, to stringent environmental, health and safety regulations, and compliance with those regulations could require us to make significant investments. We are a defendant in several lawsuits that could have an adverse effect on our financial condition and/or financial performance, unless they are successfully resolved. Our businesses depend on a continuous stream of new products, and failure to introduce new products could affect our sales and profitability. We are subject to stringent labor and employment laws in certain jurisdictions in which we operate, we are party to various collective bargaining arrangements, and our relationship with our employees could deteriorate, which could adversely impact our operations. Employee benefit costs, especially postretirement costs, constitute a significant element of our annual expenses, and funding these costs could adversely affect our financial condition. Our restructuring initiatives may not provide sufficient cost savings to justify their expense. We are exposed to intangible asset risk. We have in the past identified material weaknesses in our internal controls, and the identification of any material weaknesses in the future could affect our ability to ensure timely and reliable financial reports. We are exposed to risks associated with acts of God, terrorists and others, as well as fires, explosions, wars, riots, accidents, embargoes, natural disasters, strikes and other work stoppages, quarantines and other governmental actions, and other events or circumstances that are beyond our control.

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35214--3/11/2009--FERRO_CORP