785787--1/27/2009--AEP_INDUSTRIES

related topics

{stock, price, share}

{cost, regulation, environmental}

{cost, operation, labor}

{customer, product, revenue}

{condition, economic, financial}

{debt, indebtedness, cash}

{stock, price, operating}

{provision, law, control}

{product, market, service}

{personnel, key, retain}

{capital, credit, financial}

Our business is dependent on the price and availability of resin, our principal raw material, and our ability to pass on resin price increases to our customers. Intense competition in the flexible packaging markets may adversely affect our operating results. We are subject to various environmental and health and safety laws and regulations which govern our operations and which may result in potential liability. In addition, consumer preferences and ongoing health and safety studies on plastics and resins may adversely affect our business. The Atlantis acquisition and other future acquisitions inherently involve significant risks and uncertainties. The recent global economic and financial market crisis has had and may continue to have a negative effect on our business and operations. The loss of a key supplier could lead to increased costs and lower profit margins. We have limited contractual relationships with our customers and, as a result, our customers may unilaterally reduce the purchase of our products. Loss of third-party transportation providers upon whom we depend or increases in fuel prices could increase our costs or cause a disruption in our operations. We may, from time to time, experience problems in our labor relations. We are dependent on the management experience of our key personnel and our ability to attract and retain additional personnel. Our Chief Executive Officer owns a substantial amount of our common stock and has significant influence over our business. Our business is subject to risks associated with manufacturing processes. 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. Credit market developments may reduce availability under our credit agreement. To service our debt or redeem such debt upon a change of control, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. We are subject to a number of restrictive debt covenants which may restrict our business and financing activities. Risks Related to an Investment in Our Common Stock Our common stock price may be volatile. Shares of common stock eligible for future sale, and additional equity offerings by us, may adversely affect our common stock price. Our stock repurchase program could increase the volatility of the price of our common stock. Delaware law and our charter documents may impede or discourage a takeover, which could cause the market price of our shares to decline. Our issuance of preferred stock could adversely affect holders of our common stock.

Full 10-K form ▸

785787--1/27/2009--AEP_INDUSTRIES_INC