836102--2/26/2007--AMERICAN_STANDARD_COMPANIES_INC

related topics
{cost, operation, labor}
{operation, international, foreign}
{cost, regulation, environmental}
{customer, product, revenue}
{loss, insurance, financial}
{stock, price, operating}
{condition, economic, financial}
Risks Relating to Planned Separation The Company may be unable to complete the proposed separation transactions and completion of the separation transactions is subject to various risks. Each of the separated companies resulting from the completion of the separation plan may be unable to achieve some or all of the benefits that we expect will be achieved from the separation transactions. Risks Related to Current Operations The Company s sales could decline due to macro-economic factors, weather and other factors outside of the Company s control. The Company s exposure to exchange rate fluctuations on cross border transactions and the translation of local currency results into U.S. dollars could negatively impact our results of operations. The Company is subject to general risks associated with our foreign operations. If the Company is unable to obtain certain raw materials and component parts at reasonable price levels, our ability to maintain existing sales margins may be affected. The Company may not be able to realize the estimated cost savings or productivity improvements from our materials management and Six Sigma initiatives, respectively. If there are changes in the environmental, health or other regulations that affect one or more of the Company s current products or future products, it could have a negative impact on the Company s business and results of operations. Changes to the Company s asbestos liability or insurance receivable could impact our results of operations. If the Company is not able to maintain good relations with our unionized employees, we could suffer work stoppages that could negatively affect our business and results of operations.

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