886035--3/1/2010--GENERAL_CABLE_CORP

related topics

{debt, indebtedness, cash}

{stock, price, share}

{capital, credit, financial}

{tax, income, asset}

{regulation, change, law}

{acquisition, growth, future}

{cost, operation, labor}

{cost, regulation, environmental}

{customer, product, revenue}

{financial, litigation, operation}

{operation, natural, condition}

{product, market, service}

{loss, insurance, financial}

{cost, contract, operation}

{provision, law, control}

{personnel, key, retain}

{competitive, industry, competition}

Compliance with foreign and U.S. laws and regulations applicable to our international operations, including the Foreign Corrupt Practices Act (FCPA), is difficult and may increase the cost of doing business in international jurisdictions. Volatility in the price of copper and other raw materials, as well as fuel and energy, could adversely affect our businesses. Interruptions of supplies from our key suppliers may affect our results of operations and financial performance. Failure to negotiate extensions of our labor agreements as they expire may result in a disruption of our operations. Our inability to continue to achieve productivity improvements may result in increased costs. Changes in industry standards and regulatory requirements may adversely affect our business. Advancing technologies, such as fiber optic and wireless technologies, may continue to make some of our products less competitive. We are substantially dependent upon distributors and retailers for non-exclusive sales of our products and they could cease purchasing our products at any time. In each of our markets, we face pricing pressures that could adversely affect our results of operations and financial performance. If either our uncommitted accounts payable confirming arrangement or our accounts receivable financing arrangement for our European operations is cancelled, our liquidity may be negatively impacted. We are exposed to counterparty risk in our hedging arrangements. As a result of market and industry conditions, we may be required to recognize impairment charges for our long-lived assets including goodwill or in the event we close additional plants. As a result of market and industry conditions, we may be required to reduce our recorded inventory values, which would result in charges against income We are subject to certain asbestos litigation and unexpected judgments or settlements that could have a material adverse effect on our financial results. Environmental liabilities could potentially adversely impact us and our affiliates. There are pending antitrust and competition law investigations relating to the cable industry. Growth through acquisition has been a significant part of our strategy and we may not be able to successfully identify or integrate acquisitions. We have assumed substantially all of the liabilities of the PDIC operations, which may expose us to additional risks and uncertainties that we would not face if the acquisition had not occurred. Terrorist and other attacks or acts of war may adversely affect the markets in which we operate and our profitability. If we fail to retain our key employees, our business may be harmed. Declining returns in the investment portfolio of our defined benefit pension plans and changes in actuarial assumptions could increase the volatility in our pension expense and require us to increase cash contributions to the plans. Risks Related to Our Debt Our substantial indebtedness could adversely affect our business and financial condition. Despite our current level of indebtedness, we may be able to incur substantially more indebtedness. This could further exacerbate the risks associated with our indebtedness. The agreements that govern our secured indebtedness, our 7.125% Senior Notes and Senior Floating Rate Notes contain various covenants that limit our discretion in the operation of our business. Failure to comply with covenants and other provisions in our existing or future financing agreements could result in cross-defaults under some of our financing agreements, which cross-defaults could jeopardize our ability to satisfy our obligations. Our ability to pay principal and interest on outstanding indebtedness depends upon our receipt of dividends or other intercompany transfers from our subsidiaries, and claims of creditors of our subsidiaries that do not guarantee our indebtedness will have priority over claims you may have as for our guaranteed indebtedness with respect to the assets and earnings of those subsidiaries. To service our indebtedness, we will require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control. If we fail to meet our payment or other obligations under our secured indebtedness, the lenders under this indebtedness could foreclose on, and acquire control of, substantially all of our assets. A downgrade in our financial strength or credit ratings could limit our ability to conduct our business or offer and sell additional debt securities, and could hurt our relationships with creditors. Risks Related to Our Securities Our stock price has been and continues to be volatile, and our ability to pay dividends on our common stock is limited. Future issuances of shares of our common stock may depress its market price. Our convertible note hedge and warrant transactions may affect the trading price of our common stock. Issuances of additional series of preferred stock could adversely affect holders of our common stock. Provisions in our constituent documents could make it more difficult to acquire our company.

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886035--3/1/2010--GENERAL_CABLE_CORP_/DE/