843762--5/23/2008--REXNORD

related topics

{cost, contract, operation}

{acquisition, growth, future}

{condition, economic, financial}

{financial, litigation, operation}

{product, market, service}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{cost, operation, labor}

{product, liability, claim}

{property, intellectual, protect}

{customer, product, revenue}

{personnel, key, retain}

{system, service, information}

{operation, international, foreign}

Our substantial indebtedness could adversely affect our business. The markets in which we sell our products are highly competitive. Our business depends upon general economic conditions and other market factors beyond our control, and we serve customers in cyclical industries. As a result, our operating results could be negatively affected during economic downturns. Increases in the cost of our raw materials, in particular bar steel, brass, castings, copper, forgings, high-performance engineered plastic, plate steel, resin, sheet steel and zinc, or the loss of a substantial number of our suppliers could adversely affect our financial health. We rely on independent distributors. Termination of one or more of our relationships with any of those independent distributors or an increase in the distributors sales of our competitors products could have a material adverse effect on our business, financial condition or results of operations. 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. We may incur significant costs for environmental compliance and/or to address liabilities under environmental laws and regulations. Certain subsidiaries are subject to numerous asbestos claims. Certain WM subsidiaries are subject to a number of class action claims. Weather could adversely affect the demand for WM s products and decrease its net sales. Our international operations are subject to uncertainties, which could adversely affect our operating results. We may be unable to make necessary capital expenditures. 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 could incur substantial business interruptions as the result of an expansion of our People Soft platform. We may be unable to successfully realize all of the intended benefits from our past acquisitions, 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. Our historical financial information is not comparable to our current financial condition and results of operations because of our use of purchase accounting in connection with the GA, Zurn, Apollo and Falk acquisitions and due to the different basis of accounting used by the Company prior to the Apollo acquisition.

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843762--5/23/2008--REXNORD_LLC