789933--2/28/2007--NACCO_INDUSTRIES

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{product, market, service}

{cost, operation, labor}

{condition, economic, financial}

{operation, international, foreign}

{operation, natural, condition}

{debt, indebtedness, cash}

{financial, litigation, operation}

{capital, credit, financial}

The pricing and costs of NMHG s products have been and may continue to be impacted by foreign currency fluctuations, which could materially increase the Company s costs, result in material exchange losses and materially negatively affect operating margins. NMHG depends on a limited number of suppliers for specific critical components. NMHG s lift truck business is cyclical. Any downturn in the general economy could result in significant decreases in the Company s revenue and profitability and an inability to sustain or grow the business. If the capital goods market worsens, the cost saving efforts implemented by NMHG may not be sufficient to achieve the benefits NMHG expects. Introduction of new products will require funding at current or higher levels, which could materially adversely affect the Company s results of operations. If NMHG s current cost reduction and efficiency programs, including the introduction of new products, does not prove effective, the Company s revenues, profitability and market share could be significantly reduced. If cost saving efforts implemented for NMHG s owned dealers are not effective, the Company s profitability could be materially reduced. The failure of NMHG to compete effectively within its industry could result in a significant decrease in the Company s revenues and profitability. NMHG relies primarily on its network of independent dealers to sell its lift trucks and aftermarket parts and has no direct control over sales by those dealers to customers. Ineffective or poor performance by these independent dealers could result in a significant decrease in the Company s revenues and profitability and an inability by NMHG to sustain or grow the business. s actual liabilities relating to pending lawsuits may exceed its expectations NMHG has guaranteed, or is subject to repurchase or recourse obligations with respect to, financing arrangements of some of its customers. NMHG is subject to risks relating to its foreign operations. s actual liabilities relating to environmental matters may exceed its expectations HB/PS depends on third-party suppliers for almost all of the manufacturing of all of its products, which subjects the Company to risks, including unanticipated increases in expenses, decreases in revenues and disruptions in the supply chain. Increases in costs of products may materially reduce the Company s profitability. HB/PS is dependent on key customers and the loss of, or significant decline in business from, one or more of its key customers could materially reduce the Company s revenues and profitability and the Company s ability to sustain or grow its business. The increasing concentration of HB/PS small electric household appliance sales among a few retailers and the trend toward private label brands could materially reduce revenues and profitability. The small electric household and commercial appliance industry is consolidating, which could reduce HB/PS ability to successfully secure product placements at key customers and limit its ability to sustain a cost competitive position in the industry. HB/PS inability to compete effectively with competitors in its industry, including large established companies with greater resources, could result in lost market share and decreased revenues. The market for Housewares products is highly seasonal and dependent on consumer spending, which could result in significant variations in the Company s revenues and profitability. Housewares business is sensitive to the strength of the U.S. retail market and weakness in this market could adversely affect its business. Termination of long-term mining sales contracts could materially reduce the Company s revenues and profitability. NACoal s unconsolidated project mining subsidiaries are subject to risks created by changes in customer demand, inflationary adjustments and tax rates. NACoal s other mining operations, including its consolidated mining operations, are subject to risks created by its capital investment in the mines, the costs of mining the coal and the dragline mining equipment, in addition to risks created by changes in customer demand, inflationary adjustments and tax rates. Mining operations are vulnerable to weather and other conditions that are beyond NACoal s control. Government regulations could impose costly requirements on NACoal. NACoal is subject to federal and state mining regulations, which place a burden on it. NACoal s operations are impacted by the Clean Air Act Amendments on coal consumption.

Full 10-K form ▸

789933--2/28/2007--NACCO_INDUSTRIES_INC