These excerpts taken from the ENR 10-K filed Nov 26, 2008.
General economic conditions can significantly impact Energizers financial results.
In general, Energizers financial results can be significantly affected by negative economic conditions, inflationary or deflationary pressures, high labor or material and commodity costs, and unforeseen changes in consumer demand or buying patterns. These general risks are, of course, currently heightened as economic conditions globally have deteriorated significantly and may remain at a recessionary level for the foreseeable future. These economic conditions could have potentially significant impacts on employment levels, consumer demand, and credit availability in many countries where Energizer operates, with a direct impact on our sales and profitability, as well as our ability to generate sufficient internal cash flows or access credit at reasonable rates in order to meet future operating expenses and liquidity requirements, fund capital expenditures or service debt as it becomes due. Tighter credit markets could also result in supplier or customer disruptions. Increasing retailer customer concentration on a global scale as a response to economic conditions could result in reduced sales outlets for our products, greater negotiating pressures on Energizer, and global pricing requirements across markets. Although we believe our current sources of credit are generally financially sound and that our access to credit will not be significantly limited, debt capital markets have tightened, banks have exerted more leverage in obtaining more favorable terms, and the solvency of some banks and financial institutions has been challenged by sub-prime lending difficulties as well as other economic and market developments.
General economic conditions can
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