785787--1/31/2006--AEP_INDUSTRIES

related topics

{cost, regulation, environmental}

{debt, indebtedness, cash}

{stock, price, operating}

{operation, international, foreign}

{customer, product, revenue}

{cost, operation, labor}

{product, market, service}

{personnel, key, retain}

{provision, law, control}

{control, financial, internal}

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, and consumer preferences and ongoing health and safety studies on plastics and resins may adversely affect our business. The loss of a key supplier could lead to increased costs and lower profit margins We experience fluctuations in operating income, which may cause our stock price to fluctuate. We have limited contractual relationships with our customers and, as a result, our customers may unilaterally reduce the purchase of our products. Our business may be adversely affected by risks associated with foreign operations. Our international operations subject us to currency translation risk and currency transaction risk which could cause our results to fluctuate significantly from period to period and hinder us from making our debt service payments. We may, from time to time, experience problems in our labor relations. 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. Anti-takeover and change of control provisions may adversely affect our stockholders. A possible violation of European competition law could adversely affect us. We are dependent on the management experience of our key personnel. Our Chief Executive Officer owns a substantial amount of our common stock and has significant influence over our business. If we fail to comply with Section 404 of the Sarbanes-Oxley Act of 2002, our reputation, financial condition and the value of the notes may be adversely affected. We have a high level of debt relative to our equity, which reduces cash available for our business, which may adversely affect our ability to obtain additional funds and increases our vulnerability to economic or business downturns. To service our debt, 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.

Full 10-K form ▸

785787--1/31/2006--AEP_INDUSTRIES_INC