77543--2/28/2008--PERINI

related topics

{cost, contract, operation}

{financial, litigation, operation}

{competitive, industry, competition}

{tax, income, asset}

{acquisition, growth, future}

{cost, operation, labor}

{condition, economic, financial}

{debt, indebtedness, cash}

{operation, international, foreign}

{personnel, key, retain}

{cost, regulation, environmental}

{stock, price, operating}

{capital, credit, financial}

Risks Relating to Our Business: We may not fully realize the revenue value reported in our backlog. We will require substantial personnel and specialty subcontractor resources to execute and perform on our contracts in backlog. We are subject to significant legal proceedings, which, if determined adversely to us, could harm our reputation, preclude us from bidding on future projects and/or have a material adverse effect on us. Our contracts require us to perform extra or change order work, which can result in disputes and adversely affect our working capital, profits and cash flows. Economic, political and other risks associated with our international operations involve risks not faced by our domestic competitors, which could adversely affect our revenues and earnings. A decrease in U.S. government funding or change in government plans, particularly with respect to construction projects in Iraq and Afghanistan, as well as the risks associated with undertaking projects in these countries, could adversely affect the continuation of existing projects or the number of projects available to us in the future. Increased regulation of the hospitality and gaming industry could reduce the number of future hospitality and gaming projects available, which, in turn, could adversely affect our future earnings. A decrease in government funding of public projects could reduce revenues in some of our major markets. If we are unable to accurately estimate the overall risks, revenues or costs on a contract, we may achieve a lower than anticipated profit or incur a loss on that contract. The percentage-of-completion method of accounting for contract revenues may result in material adjustments, which could result in a charge against our earnings. We are subject to a number of risks as a U.S. government contractor, which could either harm our reputation, result in fines or penalties against us and/or adversely impact our financial condition. Our participation in construction joint ventures exposes us to liability and/or reputational harm for failures of our partners. Our pension plan is underfunded and we may be required to make significant future contributions to the plan. The construction services industry is highly schedule driven, and our failure to meet schedule requirements of our contracts could adversely affect our reputation and/or expose us to financial liability. Competition for new project awards is intense and our failure to compete effectively could reduce our market share and profits. Economic downturns could reduce the level of consumer spending within the hospitality and gaming industry, which could adversely affect demand for our services. An inability to obtain bonding could limit the number of projects we are able to pursue. Conflicts of interest may arise involving our Chairman and Chief Executive Officer and certain of our directors. We could face risks associated with environmental laws. Our reputation may be harmed and our future earnings may be negatively impacted if we are unable to retain key members of our management. Our business, financial position, results of operations and cash flows could be adversely affected by work stoppages and other labor problems. We are subject to restrictive covenants under our credit facility that could limit our flexibility in managing the business. Our acquisition strategy involves a number of risks, the realization of which could adversely impact our future revenues and the revenues of the businesses that we acquire.

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77543--2/28/2008--PERINI_CORP