851797--3/31/2006--K&F_INDUSTRIES_INC

related topics
{customer, product, revenue}
{regulation, government, change}
{cost, regulation, environmental}
{acquisition, growth, future}
{loss, insurance, financial}
{cost, operation, labor}
{competitive, industry, competition}
{operation, international, foreign}
{debt, indebtedness, cash}
Program Participation Costs negatively affect our cash flow during the earlier stages of the lifecycle of an aircraft platform. We may be unable to execute our growth strategy, and our failure to do so could have a negative impact on our business. The U.S. government is a significant customer, the loss of which could adversely affect us. A decline in the U.S. defense budget or limitations on sales to foreign governments may adversely affect our sales. We could be adversely affected if one of our components causes an aircraft to crash. The airline industry is heavily regulated and failure to comply with applicable laws could reduce our sales or require us to incur additional costs to achieve compliance, which could negatively impact our results of operations. Any problem or interruption in our supply from key vendors could delay production and adversely affect our sales. We operate in a very competitive business environment. The uncertainties relating to our foreign operations could affect our operating results. We are subject to environmental regulations and our operations may expose us to environmental liabilities. We have been included, and may in the future be included, in claims against prior owners of our facilities relating to asbestos exposure. Risks Relating to Our Indebtedness

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