based company to compete lawfully with local competitors

These statements aresubject to a variety of uncertainties, unknown risks and other factorsconcerning the Companys operations and business environment, which aredifficult to predict and often beyond the control of the Company. Importantfactors that could cause actual results to differ materially from thosesuggested by these forward-looking statements, and that could adversely affectthe Companys future financial performance, include the following: We depend on reliable sources of energy and raw materials, includingpetroleum-based materials, and other supplies, at a reasonable cost, butavailability of such materials and supplies could be interrupted and/or theprices charged for them could escalate. The markets in which we participate are highly competitive and subject tointense price competition. We are striving to improve operating margins through sales growth, priceincreases, productivity gains, improved purchasing techniques, and restructuringactivities, but we may not be successful in achieving the desired improvements. Our products are sold into industries where demand is unpredictable, cyclicalor heavily influenced by consumer spending, and such demand may be impacted bymacroeconomic circumstances and uncertainties in credit markets. We have a growing presence in the Asia-Pacific region where it can bedifficult for a U.S.-based company to compete lawfully with local competitors. Regulatory authorities in the U.S., European Union and elsewhere are taking amuch more aggressive approach to regulating hazardous materials and thoseregulations could affect our sales and operating profits.

Our operations are subject to operating hazards and, as a result, to stringentenvironmental, health and safety regulations and compliance with thoseregulations could require us to make significant investments. We depend on external financial resources and the economic environment andcredit market could interrupt our access to capital markets, borrowings orfinancial transactions to hedge certain risks, which could adversely affect ourfinancial condition. Interest rates on some of our external borrowings are variable, and ourborrowing costs could be affected adversely by interest rate increases. Many of our assets are encumbered by liens that have been granted to lenders,and those liens affect our flexibility in making timely dispositions of propertyand businesses. We are subject to a number of restrictive covenants in our credit facilities,and those covenants could affect our flexibility in funding strategicinitiatives and lead to challenges in meeting our liquidity requirements. We have significant deferred tax assets, and our ability to utilize theseassets will depend on our future performance. We are a defendant in several lawsuits that could have an adverse effect onour financial condition and/or financial performance, unless they aresuccessfully resolved.

Our businesses depend on a continuous stream of new products, and failure tointroduce new products could affect our sales and profitability. We are subject to stringent labor and employment laws in certain jurisdictionsin which we operate and party to various collective bargaining arrangements, andour relationship with our employees could deteriorate, which could adverselyimpact our operations. Employee benefit costs, especially post-retirement costs, constitute asignificant element of our annual expenses, and funding these costs couldadversely affect our financial condition. Our restructuring initiatives may not provide sufficient cost savings tojustify their expense We are exposed to intangible asset risk. We have in the past identified material weaknesses in our internal controls,and the identification of any material weaknesses in the future could affect ourability to ensure timely and reliable financial reports.