817979--3/13/2009--ACCURIDE

related topics

{debt, indebtedness, cash}

{cost, operation, labor}

{condition, economic, financial}

{property, intellectual, protect}

{cost, regulation, environmental}

{product, market, service}

{tax, income, asset}

{customer, product, revenue}

{acquisition, growth, future}

{competitive, industry, competition}

{product, liability, claim}

{loss, insurance, financial}

{personnel, key, retain}

{operation, natural, condition}

{operation, international, foreign}

{stock, price, operating}

We rely on, and make significant operational decisions based in part upon, industry data and forecasts primarily contained in industry forecast publications which may prove to be inaccurate. If deterioration of the economy continues, this could cause additional financial and operational declines, which could lead to unanticipated reductions in our earnings and could result in future goodwill impairments. During fiscal 2008, we recorded goodwill and other intangible asset impairment charges of $277.0 million. Factors we consider important that could trigger a subsequent impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of the use of our assets or the strategy for our overall business and significant negative industry or economic trends. If current economic conditions worsen causing decreased revenues and/or increased costs, we may have further material goodwill impairments. The failure to successfully implement our cost restructuring plan, or the lack of effect and impact of our cost restructuring plan once implemented, could adversely affect our business. We are dependent on sales to a small number of our major customers and on our status as standard supplier on certain truck platforms of each of our major customers. Increased cost or reduced supply of raw materials and purchased components may adversely affect our business, results of operations or financial condition. Our business is affected by the seasonality and regulatory nature of the industries and markets that we serve. Cost reduction and quality improvement initiatives by OEMs could have a material adverse effect on our business, results of operations or financial condition. We operate in highly competitive markets. We face exposure to foreign business and operational risks including foreign exchange rate fluctuations and if we were to experience a substantial fluctuation, our profitability may change. We may not be able to continue to meet our customers demands for our products and services. Equipment failures, delays in deliveries or catastrophic loss at any of our facilities could lead to production or service curtailments or shutdowns. We may incur potential product liability, warranty and product recall costs. Work stoppages or other labor issues at our facilities or at our customers facilities could have a material adverse effect on our operations. We are subject to a number of environmental rules and regulations that may require us to make substantial expenditures. We might fail to adequately protect our intellectual property, or third parties might assert that our technologies infringe on their intellectual property. Litigation against us could be costly and time consuming to defend. If we fail to retain our executive officers, our business could be harmed. We have entered into typical severance arrangements with certain of our senior management employees, which may result in certain costs associated with strategic alternatives. Our products may be rendered obsolete or less attractive by changes in regulatory, legislative or industry requirements. Our strategic initiatives may be unsuccessful, may take longer than anticipated, or may result in unanticipated costs. Other Risks Related to Our Business Our substantial leverage and significant debt service obligations could have a material adverse effect on our financial condition or our ability to fulfill our obligations and make it more difficult for us to fund our operations. Despite our substantial leverage, we and our subsidiaries will be able to incur more indebtedness. This could further exacerbate the risk immediately described above, including our ability to service our indebtedness. To service our indebtedness, 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 covenants, which, if breached, may restrict our business and financing activities. Sun Capital has significant influence on our major corporate decisions and could take actions that could be adverse to you.

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817979--3/13/2009--ACCURIDE_CORP