917470--3/13/2007--OLYMPIC_STEEL

related topics

{personnel, key, retain}

{stock, price, operating}

{cost, operation, labor}

{system, service, information}

{cost, regulation, environmental}

{competitive, industry, competition}

{gas, price, oil}

{acquisition, growth, future}

{condition, economic, financial}

{product, market, service}

{capital, credit, financial}

{stock, price, share}

{debt, indebtedness, cash}

Risks Related to our Business Volatile steel prices can cause significant fluctuations in our operating results. Our sales and operating income could decrease if we are unable to pass producer price increases on to our customers. An interruption in the sources of our steel supply could have a material adverse effect on our results of operations. We service industries that are highly cyclical, and any downturn in our customers industries could reduce our sales, margins, and profitability. Our success is dependent upon our relationships with certain key customers. Customer credit constraints and credit losses could have a material adverse effect on our results of operations. We depend on our senior management team and the loss of any member could prevent us from implementing our business strategy. Labor disruptions at any of our facilities or those of major customers could adversely affect our business, results of operations and financial condition. Risks associated with our growth strategy may adversely impact our ability to sustain our growth and our stock price may decline. We may have difficulties integrating our acquisition of Tinsley Group PS W, Inc. into our business which could adversely affect our results of operations. The failure of our key computer-based systems could have a material adverse effect on our business. Our project to initiate implementation of a new information system could adversely affect our results of operations and cash flows. We may not be able to retain or expand our customer base if the United States manufacturing industry continues to erode. Our business is highly competitive, and increased competition could reduce our market share and harm our financial performance. Increases in energy prices would increase our operating costs, and we may be unable to pass all these increases on to our customers in the form of higher prices. We expect to finance our future growth through borrowings under our bank credit facility. Increased leverage could adversely impact our business and results of operations. Risks Related to Our Common Stock The market price for our common stock may be volatile. Our quarterly results may be volatile.

Full 10-K form ▸

917470--3/13/2007--OLYMPIC_STEEL_INC