67887--11/29/2006--MOOG

related topics

{product, liability, claim}

{operation, natural, condition}

{product, market, service}

{loss, insurance, financial}

{cost, operation, labor}

{acquisition, growth, future}

{operation, international, foreign}

{regulation, government, change}

{cost, contract, operation}

{tax, income, asset}

{personnel, key, retain}

{competitive, industry, competition}

We enter into fixed-price contracts, which could subject us to losses if we have cost overruns. Contracting in the defense industry is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment. If we are unable to adapt to technological change, demand for our products may be reduced. Our new product and research and development efforts may not be successful, which would result in a reduction in our sales and earnings. The loss of Boeing or Lockheed Martin as a customer or a significant reduction in sales to either company would reduce our sales and earnings. We operate in highly competitive markets with competitors who may have greater resources than we possess, which could reduce the volume of products we can sell and our operating margins. Significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could affect our future earnings, equity and pension funding requirements. A write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth and cause us to violate covenants in our bank credit facility. Our sales and earnings growth may be reduced if we cannot implement our acquisition strategy. We may incur losses and liabilities as a result of our acquisition strategy. Our future growth and continued success is dependent on our key personnel. Future terror attacks, war, or other civil disturbances could negatively impact our business. Our operations in foreign countries expose us to political risks and adverse changes in local legal, tax and regulatory schemes. Government regulations could limit our ability to sell our products outside the United States. Our facilities could be damaged by catastrophes which could reduce our production capacity and result in a loss of customers. The failure of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages.

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67887--11/29/2006--MOOG_INC