743238--3/16/2010--SPARTAN_MOTORS

related topics

{condition, economic, financial}

{cost, regulation, environmental}

{customer, product, revenue}

{stock, price, operating}

{acquisition, growth, future}

{capital, credit, financial}

{product, liability, claim}

{control, financial, internal}

{regulation, government, change}

{operation, international, foreign}

{gas, price, oil}

{regulation, change, law}

The 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 on U.S. government contracts, which are subject to additional and often unique risks. The integration of businesses or assets we have acquired or may acquire in the future involves challenges that could disrupt our business and harm our financial condition. Disruptions within our dealer network could adversely affect our business. We may not be able to successfully implement and manage our growth strategy. When we introduce new products, we may incur expenses that we did not anticipate, such as recall expenses, resulting in reduced earnings. Any negative change in the Company s relationship with its major customers could have significant adverse effects on revenues and profits. 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. Changes to laws and regulations governing our business could have a material impact on our operations. Our businesses are cyclical and this can lead to fluctuations in our operating results. Economic, legal and other factors could impact our customers ability to pay accounts receivable balances due from them. Global political conditions could have a negative effect on our business. Fuel shortages, or higher prices for fuel, could have a negative effect on sales. Our operating results may fluctuate significantly on a quarter-to-quarter basis. Our stock price has been and may continue to be volatile, which may result in losses to our shareholders. Credit market developments may reduce availability under our credit agreement. 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--3/16/2010--SPARTAN_MOTORS_INC