47518--11/29/2007--HILLENBRAND_INDUSTRIES

related topics

{cost, operation, labor}

{operation, international, foreign}

{product, liability, claim}

{acquisition, growth, future}

{financial, litigation, operation}

{personnel, key, retain}

{cost, regulation, environmental}

{regulation, government, change}

Continued fluctuations in mortality rates and increased cremations may adversely affect, as they have in recent years, the volume of our sales of burial caskets. Future financial performance of our medical technology business will depend in part on the successful introduction of new products into the marketplace on a cost-effective basis. The financial success of new products could be adversely impacted by competitors products, customer acceptance, difficulties in product development and manufacturing, quality issues and warranty claims, certain regulatory approvals and other factors. The introduction of new products may also cause customers to defer purchases of existing products, which could have an adverse effect on sales. Our medical technology and funeral service businesses are significantly dependent on several major contracts with large national providers and group purchasing organizations, or GPOs. Our relationships with these customers and organizations pose several risks. Increased prices for, or unavailability of, raw materials or sub-assemblies used in our products could adversely affect profitability or revenues. In particular, our results of operations continue to be adversely affected by high prices for steel, red metals, solid wood, plastic and fuel. Our planned separation of our funeral service and medical technology businesses may not be completed. If the separation is completed, it may not achieve the intended benefits. Our strategic initiatives may not produce the intended growth in revenue and operating income. We may not be successful in achieving expected operating efficiencies and operating cost reductions, and may experience business disruptions, associated with announced restructuring, realignment and cost reduction activities. Product liability or other liability claims could expose us to adverse judgments or could affect the sales of our products. We are involved on an ongoing basis in claims, lawsuits and governmental proceedings relating to our operations, including environmental, antitrust, patent infringement, business practices, commercial transactions, and other matters. Our funeral service business is facing increasing competition from a number of non-traditional sources and caskets manufactured abroad and imported into North America. We may not be able to grow if we are unable to successfully acquire and integrate, or form business relationships with, other companies. We may not be able to attract and retain key personnel.

Full 10-K form ▸

47518--11/29/2007--HILLENBRAND_INDUSTRIES_INC