WLM » Topics » Reduced raw material margins could adversely affect our operating results.

These excerpts taken from the WLM 10-K filed Mar 26, 2008.
Reduced raw material margins could adversely affect our operating results.
 
Raw material margin, which is the difference between our net selling price and the cost of our raw materials, is an extremely important factor in determining our operating results. Selling prices are influenced by competition and capacity utilization, which is the demand for product from NAFTA producers divided by total NAFTA industry capacity. Demand for our product is determined principally by our end-use markets, substitution of our product for other products, economic conditions, imports, and our products’ competitive cost position. Supply is determined by worldwide capacity, which is expanding for both PET resin and polyester staple fiber. Any reduction of selling prices, failure to achieve announced selling price increases, or any significant expansion in capacity over demand could reduce our operating results. Any increase in raw material costs (see “Our operations are dependent on the availability and cost of our raw materials” below) without a corresponding increase in selling price would reduce our raw material margins and operating results. A material change in demand, supply, general economic conditions or uncertainties regarding future economic prospects could have a material adverse effect on our operating results.
 
Reduced
raw material margins could adversely affect our operating
results.



 



Raw material margin, which is the difference between our net
selling price and the cost of our raw materials, is an extremely
important factor in determining our operating results. Selling
prices are influenced by competition and capacity utilization,
which is the demand for product from NAFTA producers divided by
total NAFTA industry capacity. Demand for our product is
determined principally by our end-use markets, substitution of
our product for other products, economic conditions, imports,
and our products’ competitive cost position. Supply is
determined by worldwide capacity, which is expanding for both
PET resin and polyester staple fiber. Any reduction of selling
prices, failure to achieve announced selling price increases, or
any significant expansion in capacity over demand could reduce
our operating results. Any increase in raw material costs
(see “Our operations are dependent on the
availability and cost of our raw materials” below) without
a corresponding increase in selling price would reduce our raw
material margins and operating results. A material change in
demand, supply, general economic conditions or uncertainties
regarding future economic prospects could have a material
adverse effect on our operating results.


 




This excerpt taken from the WLM 10-K filed Mar 16, 2007.
Reduced raw material margins could adversely affect our operating results.
 
Raw material margin, which is the difference between our net selling price and the cost of our raw materials, is an extremely important factor in determining our operating results. Selling prices are influenced by competition and capacity utilization, which is the demand for product from NAFTA producers divided by total NAFTA industry capacity. Demand for our product is determined principally in our end-use markets, substitution of our product for other products, economic conditions, imports, and our products’ competitive cost position. Supply is determined by worldwide capacity, which is expanding for both PET resin and polyester staple fiber. Any reduction of selling prices, failure to achieve announced selling price increases, or any significant expansion in capacity over demand could reduce our operating results. Any increase in raw material costs (see “Our operations are dependent on the availability and cost of our raw materials” below) without a corresponding increase in selling price would reduce our raw material margins and operating results. A material change in demand, supply, general economic conditions or uncertainties regarding future economic prospects could have a material adverse effect on our operating results.
 
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