843762--4/27/2006--REXNORD_CORP

related topics
{cost, contract, operation}
{acquisition, growth, future}
{competitive, industry, competition}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{condition, economic, financial}
{personnel, key, retain}
{cost, operation, labor}
{property, intellectual, protect}
{product, liability, claim}
{customer, product, revenue}
{operation, international, foreign}
{product, market, service}
Our markets within the PT industry are very competitive. We rely on independent distributors. We are highly leveraged, and we may not be able to meet our future debt service requirements. Our business depends upon general economic conditions, and we serve customers in cyclical industries. We are subject to risks associated with changing technology and manufacturing techniques, which could place us at a competitive disadvantage. If we lose certain of our key sales, marketing or engineering personnel, our business may be adversely affected. Increases in the cost of our raw materials, in particular sheet, plate and bar steel, castings, forgings and high-performance engineered plastic, or the loss of a substantial number of our suppliers could adversely affect our financial health. We may be unable to make necessary capital expenditures. Our international operations are subject to uncertainties, which could adversely affect our operating results. We may incur significant costs for environmental compliance and/or to address liabilities under environmental laws and regulations. We rely on intellectual property that may be misappropriated or subject to claims of infringement. We could face potential product liability claims relating to products we manufacture or distribute. We, our customers and our shippers have unionized employees that may stage work stoppages, which could seriously impact the profitability of our business. We may be unable to successfully realize all of the intended benefits from the Falk Acquisition, and we may be unable to identify or realize the intended benefits of other potential acquisition candidates. Our future required cash contributions to our pension plans may increase if new pension funding requirements are enacted into law.

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