739608--11/8/2007--PENFORD

related topics

{operation, international, foreign}

{cost, regulation, environmental}

{stock, price, operating}

{customer, product, revenue}

{cost, operation, labor}

{tax, income, asset}

{financial, litigation, operation}

{debt, indebtedness, cash}

{personnel, key, retain}

{gas, price, oil}

{cost, contract, operation}

{provision, law, control}

{condition, economic, financial}

Increases in energy and chemical costs may reduce Penford s profitability. The loss of a major customer could have an adverse effect on Penford s results of operations. The Company is substantially dependent on its manufacturing facilities; any operational disruption could result in a reduction of the Company s sales volumes and could cause it to incur substantial losses. The agreements governing the Company s debt contain various covenants that limit its ability to take certain actions and also require the Company to meet financial maintenance tests, and Penford s failure to comply with any of the debt covenants could have a material adverse effect on the Company s business, financial condition and results of operations. Changes in interest rates may affect Penford s profitability. Unanticipated changes in tax rates or exposure to additional income tax liabilities could affect Penford s profitability. Fluctuations in the relative value of the U.S. dollar and foreign currencies may negatively affect Penford s revenues and profitability. The Company may not be able to implement ethanol production as planned or at all. Even if the Company successfully implements ethanol production, its ethanol facility may not be profitable. Penford s results of operations could be adversely affected by litigation and other contingencies. Penford has foreign operations, which exposes it to the risks of doing business abroad. Penford depends on its senior management team; the loss of any member could adversely affect its operations. Penford is subject to stringent environmental and health and safety laws, which may require it to incur substantial compliance and remediation costs, thereby reducing profits. Penford s unionized workforce could cause interruptions in the Company s provision of services. Lower investment performance by the Company s pension plan assets will require it to increase its pension liability and expense, which may also lead to accelerated funding of the Company s pension obligations and divert funds from other uses. Risk Factors Relating to Penford s Common Stock Penford s stock price has fluctuated significantly; the trading price of its common stock may fluctuate significantly in the future. Provisions of Washington law and the shareholder rights plan could discourage or prevent a potential takeover.

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739608--11/8/2007--PENFORD_CORP