55604--3/28/2007--KEYSTONE_CONSOLIDATED_INDUSTRIES_INC

related topics
{cost, operation, labor}
{condition, economic, financial}
{competitive, industry, competition}
{customer, product, revenue}
{cost, contract, operation}
{cost, regulation, environmental}
{debt, indebtedness, cash}
Our leverage may impair our financial condition or limit our ability to operate our businesses. We are vulnerable to business downturns. Demand for, and prices of, certain of our products are cyclical and we may experience prolonged depressed market conditions for our products, which may result in reduced earnings or operating losses. We sell the majority of our products in mature and highly competitive industries and face price pressures in the markets in which we operate, which may result in reduced earnings or operating losses. Many of EWP s products are ultimately used in infrastructure projects by local, State or Federal governments. Wire rod imported into the U.S. continues at high levels. Global producers of wire rod are able to import their products into the U.S. with minimal tariffs and duties. Higher costs or limited availability of ferrous scrap may decrease our liquidity. Our relationships with our union employees could deteriorate. At December 31, 2006, we employed approximately 1,100 persons in our various businesses of which approximately 78% are subject to collective bargaining or similar arrangements. Our forecasted operating results for Calumet may not come to fruition.

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