95953--3/29/2007--SYNALLOY_CORP

related topics
{product, market, service}
{cost, regulation, environmental}
{condition, economic, financial}
{loss, insurance, financial}
{debt, indebtedness, cash}
{cost, operation, labor}
{control, financial, internal}
{acquisition, growth, future}
{operation, natural, condition}
The cyclical nature of the industries in which our customers operate causes demand for our products to be cyclical, creating uncertainty regarding future profitability. Product pricing and raw material costs are subject to volatility, both of which may have an adverse effect on our revenues. We encounter significant competition in all areas of our businesses and may be unable to compete effectively which could result in reduced profitability and loss of market share. The applicability of numerous environmental laws to our manufacturing facilities could cause us to incur material costs and liabilities. We are dependent upon the continued safe operation of our production facilities which are subject to a number of hazards. Certain of our employees in the Metals Segment are covered by collective bargaining agreements, and the failure to renew these agreements could result in labor disruptions and increased labor costs. The limits imposed on us by the restrictive covenants contained in our credit facilities could prevent us from obtaining adequate working capital, making acquisitions or capital improvements, or cause us to lose access to our facilities. Our existing property and liability insurance coverages contain exclusions and limitations on coverage. We believe that we must continue to enhance our existing products and to develop and manufacture new products with improved capabilities in order to continue to be a market leader. Our strategy of using acquisitions and dispositions to position our businesses may not always be successful. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

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