57515--8/28/2007--LANCASTER_COLONY_CORP

related topics
{cost, regulation, environmental}
{customer, product, revenue}
{tax, income, asset}
{cost, operation, labor}
{regulation, government, change}
{acquisition, growth, future}
{product, market, service}
{competitive, industry, competition}
Competitive conditions within our markets could impact our sales volumes and operating margins. Wal-Mart is our largest customer, and the loss of its business could cause our sales and net income to decrease. Increases in the costs or limitations to the availability of raw materials we use to produce our products could adversely affect our business by increasing our costs to produce goods. A disruption of production at certain of our manufacturing facilities could result in an inability to provide adequate levels of customer service. We may be subject to product recalls or product liability claims for misbranded, adulterated, contaminated or spoiled food products or defective consumer products. Increases in energy-related costs could negatively affect our business by increasing our costs to produce goods. The availability and cost of transportation for our products is vital to our success, and the loss of availability or increase in the cost of transportation could have an unfavorable impact on our business and results of operations. Our inability to bring production online and efficiently operate our new frozen yeast roll manufacturing facility could have a material adverse effect on our business and results of operations. Our inability to successfully renegotiate union contracts and any prolonged work stoppages or other business disruptions could have an adverse effect on our business and results of operations. There is no certainty regarding the amount of future CDSOA distributions. Impairment charges could have a material adverse effect on our financial results. We may not be able to successfully consummate proposed acquisitions or divestitures or integrate acquired businesses.

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