895663--2/26/2008--GLOBAL_INDUSTRIES

related topics

{cost, contract, operation}

{personnel, key, retain}

{control, financial, internal}

{regulation, change, law}

{customer, product, revenue}

{cost, operation, labor}

{regulation, government, change}

{cost, regulation, environmental}

{competitive, industry, competition}

{loss, insurance, financial}

{debt, indebtedness, cash}

{loan, real, estate}

We are exposed to the substantial hazards and risks inherent in marine construction, and our insurance coverage is limited. We depend on significant customers. If we are unable to attract and retain skilled workers our business will be adversely affected. We may be unable to obtain critical project materials or services on a timely basis. We may not complete fixed-price or unit-rate contracts within our original estimates of costs, which will adversely affect our results. Our industry is highly competitive. We operate in countries where corrupt behavior exists that could impair our ability to do business in the future or result in significant fines or penalties. Our internal controls may not be sufficient to achieve all stated goals and objectives; existing deficiencies may not be adequately remediated. Our business is capital intensive, and our ability to finance our business depends on generating sufficient cash flow from our operations. Our investments in auction rate securities may be adversely impacted by liquidity risk. We may experience difficulties resolving claims and variation orders, which may adversely impact our cash flows. There might be delays or cancellation of projects included in our backlog. We may experience equipment or mechanical failures, which could increase costs, reduce revenues and result in penalties for failure to meet project completion requirements. Our operations could suffer with the loss of one of our senior officers or other key personnel. Our revenues are subject to a significant number of tax regimes, and changes in the tax legislation or the rules implementing tax legislation or the regulator enforcing those rules or legislation in any one of these countries could negatively and adversely affect our results of operations. Our debt instruments contain covenants that limit our operating and financial flexibility. Critical accounting policies significantly affect our reported financial results and conditions. We have incurred losses in past years and may incur additional losses in the future which could adversely affect our operations. Compliance with environmental and other governmental regulations could be costly and could negatively impact our operations.

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895663--2/26/2008--GLOBAL_INDUSTRIES_LTD