These excerpts taken from the TTC 10-K filed Dec 22, 2008.
Economic conditions and outlook in the United States and around the world could adversely affect our net sales and earnings.
Demand for our products depends upon economic conditions and outlook, including but not limited to economic growth rates; golf course development, renovation and improvement; home ownership, construction, and sales; consumer spending levels; financing availability and terms for our distributors, dealers, and end-user customers; employment rates; interest rates; inflation; consumer confidence; and general economic and political conditions and expectations in the United States and the foreign economies in which we conduct business. Slow or negative growth rates, inflationary pressures, higher commodity costs and fuel prices, slow downs or reductions in golf course development, renovation and improvement, slow downs or reductions in home construction and sales, increased home foreclosures, reduced credit availability or unfavorable credit terms for our distributors, dealers, and end-user customers, higher short-term and mortgage interest rates, increased unemployment rates, and continued recessionary economic conditions and outlook could cause consumers to continue to reduce spending, which may cause them to delay or forego purchases of our products and could have an adverse effect on our net sales and earnings.
Increases in the cost and availability of raw materials and components that we purchase and increases in our other costs of doing business, such as transportation costs, may adversely affect our profit margins and business.
We purchase raw materials such as steel, aluminum, fuel, petroleum-based resins, linerboard, and other commodities, and components, such as engines, transmissions, transaxles, hydraulics, and electric motors, for use in our products. Increases in the cost of such raw materials and components may adversely affect our profit margins if we are unable to pass along to our customers these cost increases in the form of price increases or otherwise reduce our cost of goods sold. Historically, internal cost reduction efforts, as well as proactive vendor negotiations, alternate sourcing options, and moderate price increases on some of our products, have offset a portion of increased raw material and component costs. However, we may not be able to offset increased costs in the future. Further, if our price increases are not accepted by our customers and the market, our net sales and our market share could be adversely affected. Although most of the raw materials and components used in our products are commercially available from a number of sources and in adequate supply, any disruption in the availability of such raw materials and components, our inability to obtain substitutes for such items, or any deterioration in our relationships with or the financial viability of our suppliers could adversely affect our business. Increases in our other costs of doing business may also adversely affect our profit margins and business. For example, an increase in fuel costs may result in an increase in our transportation costs, which also could adversely affect our operating results and business.
Demand for our products depends upon economic conditions and outlook, including but not limited to economic growth rates; golf course development,
We purchase raw materials such as steel, aluminum, fuel, petroleum-based resins, linerboard, and other commodities, and components, such as engines,