743238--3/14/2008--SPARTAN_MOTORS

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{regulation, government, change}

{control, financial, internal}

{product, liability, claim}

{condition, economic, financial}

{cost, operation, labor}

{regulation, change, law}

{gas, price, oil}

Any negative change in the Company's relationship with its major customers could have significant negative effects on revenues and profits. Fuel shortages, or higher prices for fuel, could have a negative effect on sales. 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 component parts and labor costs, potentially impacted by changes in labor rates and practices, could reduce our operating income. Our sales of specialty chassis for military vehicles depend on U.S. government contracts awarded to our customers. Multi-year U.S. government contracts generally are not fully funded at inception and are subject to termination. 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. Amendments of the regulations governing our businesses could have a material impact on our operations. 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. Businesses are cyclical and this can lead to fluctuations in operating results.

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743238--3/14/2008--SPARTAN_MOTORS_INC