55772--8/31/2009--KIMBALL_INTERNATIONAL

related topics

{customer, product, revenue}

{condition, economic, financial}

{cost, regulation, environmental}

{cost, operation, labor}

{regulation, change, law}

{product, liability, claim}

{property, intellectual, protect}

{competitive, industry, competition}

{tax, income, asset}

{operation, international, foreign}

{product, market, service}

{acquisition, growth, future}

{operation, natural, condition}

{system, service, information}

{debt, indebtedness, cash}

{stock, price, operating}

{personnel, key, retain}

Unfavorable macroeconomic and industry conditions could adversely impact demand for the Company s products and adversely affect operating results. The current recession has had and may continue to have an adverse impact on the Company s operating results. The Company is exposed to the credit risk of its customers. The Company operates in a highly competitive environment and may not be able to compete successfully. The Company faces pricing pressures that could adversely affect the Company s financial position, results of operations, or cash flows. Reduction of purchases by or the loss of one or more key customers could reduce revenues and profitability. The Company s future operating results depend on the ability to purchase a sufficient amount of materials, parts, and components at competitive prices. The Company could be adversely affected by increased commodity costs or availability of raw materials. The Company s operating results are impacted by the cost of fuel and other energy sources. The Company could be impacted by manufacturing inefficiencies at certain locations. A change in the Company s sales mix among various products could have a negative impact on the gross profit margin. The Company s restructuring efforts may not be successful. Acquisitions by their nature may present risks to the Company. Start-up operations could present risks to the Company s current operations. The Company s international operations involve financial and operational risks. If the Company s efforts to introduce new products are not successful, this could limit sales growth or cause sales to decline. If customers do not perceive the Company s products to be innovative and of high quality, the Company s brand and name recognition could suffer. A loss of independent manufacturing representatives, dealers, or other sales channels could lead to a decline in sales of the Company s Furniture segment products. The Company must effectively manage working capital. The Company s assets could become impaired. There are inherent uncertainties involved in estimates, judgments, and assumptions used in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (U.S. GAAP). Any changes in estimates, judgments, and assumptions could have a material adverse effect on the Company s financial position, results of operations, or cash flows. Fluctuations in the Company s effective tax rate could have a significant impact on the Company s financial position, results of operations, or cash flows. A failure to comply with the debt covenants under the Company s $100 million credit facility could adversely impact the Company. A failure to successfully implement information technology solutions could adversely affect the Company. An inability to protect the Company s intellectual property could have a significant impact on business. A third party could claim that the Company has infringed on their intellectual property rights. The Company s insurance may not adequately protect the Company from liabilities related to product defects. The Company s failure to maintain Food and Drug Administration (FDA) registration of one or more of its registered manufacturing facilities could negatively impact the Company s ability to produce products for customers in the medical industry. The Company is subject to extensive environmental regulation and significant potential environmental liabilities. The Company s failure to retain the existing management team; maintain its engineering, technical, and manufacturing process expertise; and continue to attract qualified personnel could adversely affect the Company s business. Turnover in personnel could cause manufacturing inefficiencies. Natural disasters or other catastrophic events may impact the Company s production schedules and, in turn, negatively impact profitability. The requirements of being a public company may strain the Company s resources and distract management. Changes in government regulation may significantly increase the Company s operating costs in the United States. The value of the Company s common stock may experience substantial fluctuations for reasons over which the Company has little control.

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55772--8/31/2009--KIMBALL_INTERNATIONAL_INC