805264--4/2/2007--GEORGIA_GULF_CORP

related topics

{debt, indebtedness, cash}

{system, service, information}

{cost, regulation, environmental}

{acquisition, growth, future}

{cost, operation, labor}

{control, financial, internal}

{customer, product, revenue}

{financial, litigation, operation}

{gas, price, oil}

{property, intellectual, protect}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

{investment, property, distribution}

{product, liability, claim}

{interest, director, officer}

Our substantial level of indebtedness may limit our cash flow available to invest in the ongoing needs of our business. We may not be able to generate sufficient cash to service our indebtedness and we may be forced to take other actions to satisfy our payment obligations under our indebtedness, which may not be successful. Our senior secured credit facility and the indentures for our notes impose significant operating and financial restrictions, which may prevent us from capitalizing on business opportunities and taking some actions. However, despite these restrictions, we may still be able to incur substantially more debt, which could exacerbate the risks associated with our substantial leverage. The chemical industry is cyclical and volatile, experiencing alternating periods of tight supply and overcapacity, and the building products industry is also cyclical. This cyclicality could adversely impact our capacity utilization and cause fluctuations in our results of operations. Natural gas, electricity, fuel and raw materials costs, and other external factors beyond our control, as well as downturns in the home repair and remodeling and new home sectors of the economy, can cause wide fluctuations in our margins. The industries in which we compete are highly competitive, with some of our competitors having greater financial and other resources than we have; competition may adversely affect our results of operations. Extensive environmental, health and safety laws and regulations impact our operations and assets; compliance with these regulations could adversely affect our results of operations. Hazards associated with chemical manufacturing may occur, which would adversely affect our results of operations. We face potential product liability claims relating to the production and manufacture of building products. We rely heavily on third party transportation, which subjects us to risks that we cannot control; these risks may adversely affect our operations. We rely on a limited number of outside suppliers for specified feedstocks and services. Implementation of New ERP Information Systems We continue to pursue the disposition of certain assets of Royal Group and may pursue asset acquisitions, dispositions and joint ventures, and other transactions that may impact our results of operations. Our participation in joint ventures exposes us to risks of shared control. Fluctuations in foreign currency exchange and interest rates could affect our consolidated financial results. We rely on a variety of intellectual property rights for our building products. Any threat to, or impairment of, these rights could cause us to incur costs to defend these rights. Pending investigations of, and pending and threatened lawsuits against, Royal Group could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our ability to comply with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 is dependent upon our implementation of effective internal controls for Royal Group. We may have difficulties with our periodic reports as a result of the acquisition of Royal Group. We may encounter difficulties in integrating Royal Group s operations with our operations, which may result in our failure to realize expected cost savings and operational efficiencies and adversely affect our results of operations and cash flows.

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805264--4/2/2007--GEORGIA_GULF_CORP_/DE/