817979--3/30/2010--ACCURIDE_CORP

related topics
{debt, indebtedness, cash}
{cost, operation, labor}
{interest, director, officer}
{condition, economic, financial}
{stock, price, share}
{product, market, service}
{cost, regulation, environmental}
{property, intellectual, protect}
{loss, insurance, financial}
{competitive, industry, competition}
{acquisition, growth, future}
{customer, product, revenue}
{operation, natural, condition}
{personnel, key, retain}
{product, liability, claim}
{operation, international, foreign}
{provision, law, control}
{stock, price, operating}
Factors That May Affect Future Results Risks Related to Our Business and Industry Current economic conditions, including those related to the credit markets and the commercial vehicle industry, may have a material adverse effect on our business and results of operations. We rely on, and make significant operational decisions based in part upon, industry data and forecasts that may prove to be inaccurate. The failure to realize cost savings under our cost restructuring plan 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. Our Common Stock and Warrants are not listed on any securities exchange and, as a result, our Common Stock and Warrants may be less liquid than they otherwise would be if listed on a securities exchange. Our Common Stock would be diluted by the conversion of our convertible notes, including the PIK interest payable on our convertible notes, and by the exercise of the Warrants. 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. Substantially all the members of our Board of Directors have been associated with the Company for a relatively short period of time. If a person unaffiliated with us were to acquire a substantial amount of our Common Stock or convertible notes, a change of control could occur. 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. Risks Related to Our Indebtedness 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. Risks Related to Our Emergence from Chapter 11 Bankruptcy Proceedings Our actual financial results may vary significantly from the projections filed with the Bankruptcy Court, and investors should not rely on the projections. Because of the adoption of fresh-start accounting and the effects of the transactions contemplated by the Plan of Reorganization, financial information subsequent to February 26, 2010, will not be comparable to financial information prior to February 26, 2010. Our emergence from Chapter 11 bankruptcy proceedings may limit our ability to offset future U.S. taxable income with tax losses and credits incurred prior to emergence from Chapter 11 bankruptcy proceedings.

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