795403--3/1/2010--WATTS_WATER_TECHNOLOGIES

related topics

{operation, international, foreign}

{cost, operation, labor}

{product, liability, claim}

{condition, economic, financial}

{debt, indebtedness, cash}

{financial, litigation, operation}

{customer, product, revenue}

{stock, price, share}

{tax, income, asset}

{stock, price, operating}

{product, market, service}

{operation, natural, condition}

Current economic cycles, particularly reduced levels of commercial and residential starts and remodeling, may continue to have an adverse effect on our revenues and operating results. Our ability to make large acquisitions may be limited due to the current credit market conditions. We face intense competition and, if we are not able to respond to competition in our markets, our revenues may decrease. Changes in the costs of raw materials could reduce our profit margins. Reductions or interruptions in the supply of components or finished goods from international sources could adversely affect our ability to meet our customer delivery commitments. Implementation of our acquisition strategy may not be successful, which could affect our ability to increase our revenues or our profitability. We are subject to risks related to product defects, which could result in product recalls and could subject us to warranty claims in excess of our warranty provisions or which are greater than anticipated due to the unenforceability of liability limitations. We face risks from product liability and other lawsuits, which may adversely affect our business. Economic and other risks associated with international sales and operations could adversely affect our business and future operating results. Fluctuations in foreign exchange rates could materially affect our reported results. Our ability to achieve savings through our restructuring plans may be adversely affected by local regulations or factors beyond the control of management. The requirements to evaluate goodwill and non-amortizable assets for impairment may result in a write-off of all or a portion of our recorded amounts, which would negatively affect our operating results and financial condition. The loss or financial instability of a major customer could have an adverse effect on our results of operations. Certain indebtedness may limit our ability to pay dividends, incur additional debt and make acquisitions and other investments. We are investigating potential violations of the Foreign Corrupt Practices Act, and the results of this investigation could have a material adverse effect on our business prospects, operations, financial condition and cash flow. One of our stockholders can exercise substantial influence over our Company. Conversion and sale of a significant number of shares of our Class B Common Stock could adversely affect the market price of our Class A Common Stock.

Full 10-K form ▸

795403--3/1/2010--WATTS_WATER_TECHNOLOGIES_INC