812233--2/10/2010--OWENS-ILLINOIS_GROUP

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{product, market, service}

{condition, economic, financial}

{operation, international, foreign}

{regulation, change, law}

{cost, contract, operation}

{cost, operation, labor}

{tax, income, asset}

{acquisition, growth, future}

{loss, insurance, financial}

Substantial Leverage The Company s substantial indebtedness could adversely affect the Company s financial health. To service its indebtedness, the Company will require a significant amount of cash. The Company s ability to generate cash depends on many factors beyond its control. The Company may not be able to finance future needs or adapt its business plans to changes because of restrictions placed on it by the secured credit agreement and the indentures and instruments governing other indebtedness. Cash Used to Satisfy Other Obligations A portion of the Company s cash flow will be used to make payments to OI Inc. to satisfy certain debt and litigation-related obligations, including settlement of asbestos-related claims. International Operations The Company is subject to risks associated with operating in foreign countries. Competition The Company faces intense competition from other glass container producers, as well as from makers of alternative forms of packaging. Competitive pressures could adversely affect the Company s financial health. High Energy Costs Higher energy costs worldwide and interrupted power supplies may have a material adverse effect on operations. Economic Environment - The Company may be adversely affected by the current economic environment. Business Integration Risks The Company may not be able to effectively integrate additional businesses it acquires in the future. Customer Consolidation The continuing consolidation of the Company s customer base may intensify pricing pressures and have a material adverse effect on operations. Seasonality and Raw Materials Profitability could be affected by varied seasonal demands and the availability of raw materials. Environmental Risks The Company is subject to various environmental legal requirements and may be subject to new legal requirements in the future. These requirements may have a material adverse effect on operations. Labor Relations Some of the Company s employees are unionized or represented by workers councils. Accounting The Company s financial results are based upon estimates and assumptions that may differ from actual results. Accounting Standards The adoption of new accounting standards or interpretations could adversely impact the Company s financial results. Goodwill A significant write down of goodwill would have a material adverse effect on the Company s reported results of operations and net worth. Pension Funding Declines in the fair value of the assets of the pension plans sponsored by the Company could require increased funding.

Full 10-K form ▸

812233--2/10/2010--OWENS-ILLINOIS_GROUP_INC