915913--3/15/2006--ALBEMARLE

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{product, liability, claim}

{operation, international, foreign}

{cost, operation, labor}

{condition, economic, financial}

{operation, natural, condition}

{cost, contract, operation}

{property, intellectual, protect}

{investment, property, distribution}

{personnel, key, retain}

{acquisition, growth, future}

{product, candidate, development}

Our inability to pass through increases in costs and expenses for raw materials and energy, on a timely basis or at all, could have a material adverse effect on the margins of our products. Downturns in our customers cyclical industries could adversely affect our sales and profitability. Our results are subject to fluctuation because of irregularities in the demand for our HPC catalysts and certain of our agrichemicals. Changes in our customers products can reduce the demand for our specialty chemicals. Our research and development efforts may not succeed and our competitors may develop more effective or successful products. Our inability to protect our intellectual property rights could have a material adverse effect on our business, financial condition and results of operations. Our substantial international operations subject us to risks of doing business in foreign countries, which could adversely affect our business, financial condition and results of operations. We are exposed to fluctuations in foreign exchange rates, which may adversely affect our operating results and net income. We incur substantial costs in order to comply with extensive environmental, health and safety laws and regulations. Violations of environmental, health and safety laws and regulations may subject us to fines, penalties and other liabilities and may require us to change certain business practices. Contractual indemnities may be ineffective in protecting us from environmental liabilities. Concern about the impact of some of our products on human health or the environment may lead to regulation, or reaction in our markets independent of regulation, that could reduce or eliminate markets for such products. We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications. Our substantial indebtedness could adversely affect our financial health and limit our ability to react to changes in our industry or to implement our strategic initiatives. We will need a significant amount of cash to service our indebtedness and our ability to generate cash depends on many factors beyond our control. Restrictive covenants in our debt instruments may adversely affect our business. A downgrading of the ratings on our debt or an increase in interest rates will cause our debt service obligations to increase. Our business is subject to hazards common to chemical businesses, any of which could interrupt our production and adversely affect our results of operations. The insurance that we maintain may not fully cover all potential exposures. We may incur significant charges in the event we close all or part of a manufacturing plant or facility. If we are unable to retain key personnel or attract new skilled personnel, it could have an adverse effect on our business. Some of our employees are unionized, represented by workers councils or are employed subject to local laws that are less favorable to employers than the laws of the United States. Our joint ventures may not operate according to their business plans if our partners fail to fulfill their obligations, which may adversely affect our results of operations and may force us to dedicate additional resources to these joint ventures. We may not be able to consummate future acquisitions or integrate future acquisitions into our business, which could result in unanticipated expenses and losses. Although our pension plans are currently adequately funded, events could occur that would require us to make significant contributions to the plans and reduce the cash available for our business. The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and decrease demand for our products.

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915913--3/15/2006--ALBEMARLE_CORP