91142--2/26/2010--SMITH_A_O

related topics

{operation, international, foreign}

{regulation, change, law}

{cost, operation, labor}

{condition, economic, financial}

{customer, product, revenue}

{tax, income, asset}

{cost, contract, operation}

{loss, insurance, financial}

{acquisition, growth, future}

{stock, price, operating}

{loan, real, estate}

{competitive, industry, competition}

{product, liability, claim}

{financial, litigation, operation}

The effects of the global economic downturn could have a material adverse effect on our business A portion of our business could continue to be adversely affected by a decline in new residential or commercial construction A portion of our business could be affected by a slowing Chinese economy A portion of our business could be affected by a slowing Chinese economy A material loss, cancellation, reduction, or delay in purchases by one or more of our largest customers could harm our business Because we participate in markets that are highly competitive, our revenues could decline as we respond to competition We increasingly manufacture and sell our products outside the United States, which may present additional risks to our business We are subject to regulation of our international operations that could adversely affect our business and results of operations In serving U.S. customers of our electric motors business, we manufacture a significant portion of our products in Mexico and China, which exposes us to the risk of increased labor costs due to both wage inflation in Mexico and stability or increases in the value of the Mexican peso and Chinese RMB relative to the U.S. dollar In serving U.S. customers of our electric motors business, we manufacture a significant portion of our products in Mexico and China, which exposes us to the risk of increased labor costs due to both wage inflation in Mexico and stability or increases in the value of the Mexican peso and Chinese RMB relative to the U.S. dollar Our operations could be adversely impacted by material price volatility and supplier concentration Our underfunded pension plans require future pension contributions which could limit our flexibility in managing our company We have significant goodwill and an impairment of our goodwill could cause a decline in our net worth We purchased a water treatment company in late 2009 and we may encounter integration or operational difficulties We purchased a water treatment company in late 2009 and we may encounter integration or operational difficulties A substantial contribution to our financial results has come through acquisitions, and we may not be able to identify or complete future acquisitions, which could adversely affect our future growth Our results of operations may be negatively impacted by product liability lawsuits and claims Our credit facility expires in February 2011 and the terms of its replacement will be based on prevailing lending conditions when it is replaced Changes in regulations or standards could adversely affect our business Income tax regulations may change, thus negatively impacting our future operating results Income tax regulations may change, thus negatively impacting our future operating results Certain members of the founding family of our company and trusts for their benefit have the ability to influence all matters requiring stockholder approval

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91142--2/26/2010--SMITH_A_O_CORP