4285--3/1/2007--ALCAN_INC

related topics
{cost, regulation, environmental}
{condition, economic, financial}
{financial, litigation, operation}
{cost, contract, operation}
{cost, operation, labor}
{competitive, industry, competition}
{loss, insurance, financial}
Alcan s operations are energy-intensive and, as a result, its profitability may be adversely affected by rising energy costs or by energy supply interruptions. Alcan s profitability could be adversely affected by increases in the costs of and disruptions in the availability of raw materials. Alcan participates in highly competitive markets. Alcan is subject to risks caused by changes in interest rates. Alcan could be required to make large contributions to its defined benefit pension plans as a result of adverse changes in interest rates and the equity markets. Alcan has a unionized workforce, and union disputes and other employee relations issues could harm its financial results. Alcan s operations are affected by conditions and events beyond its control in countries where Alcan has operations or sells products. Alcan is exposed to market and credit risks from its derivatives portfolio and trading activities. Alcan may be exposed to significant legal proceedings or investigations. Alcan is subject to a broad range of environmental laws and regulations in the jurisdictions in which it operates, and Alcan may be exposed to substantial environmental costs and liabilities. Alcan may be subject to liability related to the use of hazardous substances in production. Alcan is, and may be in the future, subject to suits regarding product liability, commercial disputes and claims by individuals, corporations and governmental entities related to its past and current activities and the activities of companies that Alcan has acquired and may acquire in the future. Alcan may not be able to successfully implement productivity and cost-reduction initiatives. Alcan has made significant capital expenditure commitments to expand and modernize production capacity. Alcan is subject to risks related to the Novelis Spin-off. Alcan could be adversely affected by changes in the business or financial condition of significant customers.

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