757011--2/20/2009--USG

related topics

{condition, economic, financial}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{acquisition, growth, future}

{stock, price, operating}

{gas, price, oil}

{product, market, service}

{competitive, industry, competition}

{customer, product, revenue}

Our customers and suppliers are exposed to risks associated with the current worldwide downturn and financial crisis which could adversely affect their ability to pay our invoices or continue to operate their businesses. Our substantial indebtedness may adversely affect our business, financial condition and operating results. We require a significant amount of liquidity to service our indebtedness and fund operations, capital expenditures, research and development efforts, acquisitions and other corporate expenses Covenant restrictions under the agreements governing our indebtedness may limit our ability to pursue business activities or otherwise operate our business. The loss of sales to one or more of our major customers may have a material adverse effect on our business, financial condition and operating results. We face competition in each of our businesses. If we cannot successfully compete in the marketplace, our business, financial condition and operating results may be materially and adversely affected. If costs of key raw materials, energy, fuel or employee benefits increase, or the availability of key raw materials and energy decreases, our cost of products sold will increase, and our operating results may be materially and adversely affected. If the market price of natural gas declines, it may have a material adverse effect on our business, financial condition and operating results as a result of our hedging transactions and fixed-price supply agreements for natural gas. Certain of our customers have been expanding and may continue to expand through consolidation and internal growth, thereby possibly developing increased buying power over us, which may materially and adversely affect our revenues and results of operations. We are subject to environmental and safety regulations that may change and could cause us to make modifications to how we manufacture and price our products. If the downturn in the markets for our businesses does not reverse or is significantly extended, we may incur material impairment charges. A small number of our stockholders could be able to significantly influence our business and affairs. The seasonal nature of our businesses may materially and adversely affect the trading prices of our securities. We may pursue acquisitions, joint ventures and other transactions that complement or expand our businesses. We may not be able to complete proposed transactions, and even if completed, the transactions may involve a number of risks that may result in a material adverse effect on our business, financial condition and operating results.

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757011--2/20/2009--USG_CORP