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ACI » Topics » We may be unable to realize the benefits we expect to occur as a result of acquisitions that we undertake.This excerpt taken from the ACI 10-K filed Mar 1, 2010. We may
be unable to realize the benefits we expect to occur as a result
of acquisitions that we undertake.
We continually seek to expand our operations and coal reserves
through acquisitions of other businesses and assets, including
leasehold interests. Certain risks, including those listed
below, could cause us not to realize the benefits we expect to
occur as a result of those acquisitions:
Delays or unexpected difficulties in the integration process
could adversely affect our business, financial results and
financial condition. Even if we are able to integrate acquired
businesses and assets successfully, this integration may not
result in the realization for the full benefits of synergies,
cost savings and operational efficiencies that we expect or the
achievement of these benefits within a reasonable period of
time. In addition, we may not have discovered prior to acquiring
them all known and unknown factors regarding acquired businesses
or assets that could produce unintended and unexpected
consequences for us. Undiscovered factors
Table of Contents
could result in us incurring financial liabilities, which could
be material, and in us not achieving the expected benefits from
the acquisitions within our desired time frames, if at all.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. We may
be unable to realize the benefits we expect to occur as a result
of acquisitions that we undertake.
We continually seek to expand our operations and coal reserves
through acquisitions of other businesses and assets, including
leasehold interests. Certain risks, including those listed
below, could cause us not to realize the benefits we expect to
occur as a result of those acquisitions:
We may be unable to realize the benefits we expect to occur as a result of acquisitions that we undertake. We continually seek to expand our operations and coal reserves through acquisitions of other businesses and assets, including leasehold interests. Certain risks, including those listed below, could cause us not to realize the benefits we expect to occur as a result of those acquisitions:
Our profitability depends upon the long-term coal supply agreements we have with our customers. Changes in purchasing patterns in the coal industry could make it difficult for us to extend our existing long-term coal supply agreements or to enter into new agreements in the future. We sell a portion of our coal under long-term coal supply agreements, which we define as contracts with terms greater than one year. Under these arrangements, we fix the prices of coal shipped during the initial year and may adjust the prices in later years. As a result, at any given time the market prices for similar-quality coal may exceed the prices for coal shipped under these arrangements. Changes in the coal industry may cause some of our customers not to renew, extend or enter into new long-term coal supply agreements with us or to enter into agreements to purchase fewer tons of coal than in the past or on different terms or prices. In addition, uncertainty caused by federal and state regulations, including the Clean Air Act, could deter our customers from entering into long-term coal supply agreements.
Table of ContentsBecause we sell a portion of our coal production under long-term coal supply agreements, our ability to capitalize on more favorable market prices may be limited. Conversely, at any given time we are subject to fluctuations in market prices for the quantities of coal that we have produced but which we have not committed to sell. As described above under “A substantial or extended decline in coal prices could negatively affect our profitability and the value of our coal reserves,” the market prices for coal may be volatile and may depend upon factors beyond our control. Our profitability may be adversely affected if we are unable to sell uncommitted production at favorable prices or at all. For more information about our long-term coal supply agreements, you should see “Long-Term Coal Supply Arrangements” beginning on page 17. This excerpt taken from the ACI 10-K filed Mar 1, 2007. We may be unable to
realize the benefits we expect to occur as a result of
acquisitions that we undertake. |
We continually seek to expand our operations and coal reserves
through acquisitions of other businesses and assets, including
leasehold interests. Certain risks, including those listed
below, could cause us not to realize the benefits we expect to
occur as a result of those acquisitions:
| • | uncertainties in assessing the value, risks, profitability and liabilities (including environmental liabilities) associated with certain businesses or assets; | |
| • | the potential loss of key customers, management and employees of an acquired business; | |
| • | the possibility that operating and financial synergies expected to result from an acquisition do not develop; | |
| • | problems arising from the integration of an acquired business; and | |
| • | unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying the rationale for a particular acquisition. |
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