743238--3/13/2009--SPARTAN_MOTORS

related topics

{condition, economic, financial}

{cost, regulation, environmental}

{customer, product, revenue}

{capital, credit, financial}

{regulation, government, change}

{product, liability, claim}

{control, financial, internal}

{stock, price, operating}

{operation, international, foreign}

{regulation, change, law}

{gas, price, oil}

The recent global economic and financial market crisis has had and may continue to have a negative effect on our business and operations. Capital markets are currently experiencing a period of dislocation and instability, which has had and could continue to have a negative impact on the availability and cost of capital. We depend heavily on U.S. government contracts, which are subject to risks. Our businesses are cyclical and this can lead to fluctuations in our operating results. General economic and political conditions. Amendments of the regulations governing our businesses could have a material impact on our operations. Any negative change in the Company's relationship with its major customers could have significant negative effects on revenues and profits. Economic, legal and other factors could impact our customers' ability to pay accounts receivable balances due from them. We depend on a small group of suppliers for some of our components, and the loss of any of these suppliers could affect our ability to obtain components at competitive prices, which would decrease our sales or earnings. Fuel shortages, or higher prices for fuel, could have a negative effect on sales. Potential Volatility of Stock Price Credit market developments may reduce availability under our credit agreement. When we introduce new products we may incur expenses that we did not anticipate, such as recall expenses, resulting in reduced earnings. If there is a rise in the frequency and size of product liability, warranty and other claims against us, including wrongful death claims, our business, results of operations and financial condition may be harmed. Increased costs, including costs of raw materials, component parts and labor costs, potentially impacted by changes in labor rates and practices, could reduce our operating income. Failure to maintain effective internal control in accordance with Section 404 of the Sarbanes-Oxley Act could have an adverse effect on our business and stock price.

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743238--3/13/2009--SPARTAN_MOTORS_INC