GLOBAL REACH. LEADlNG TECHNOLOGY. - Zonebourse.com

• costs and difficulties in integrating, staffing and managing international operations, especially in
rapidly growing economies such as China;
• transportation delays and interruptions;
• natural disasters and the greater difficulty in recovering from them as compared to the United States in
some of the foreign countries in which we operate, especially in countries prone to earthquakes, such
as Indonesia, India, China, and Chile;
• uncertainties arising from local business practices and cultural considerations; and
• customs matters and changes in trade policy or tariff regulations.
If we are unable to successfully manage the risks associated with expanding our global business or to
adequately manage operational fluctuations internationally, it could adversely affect our business, financial
condition, or results of operations.
The cyclical nature of our original equipment manufacturing business could cause fluctuations in our
operating results.
Our business, in particular our original equipment manufacturing business, is cyclical in nature. The cyclicality
of Joy’s and CCC’s original equipment sales is driven primarily by commodity prices, product life cycles,
competitive pressures, and other economic factors affecting the mining industry such as company consolidation.
P&H’s original equipment sales are subject to cyclical movements based in large part on changes in copper, coal,
iron ore, oil, and other commodity prices. Falling commodity prices have in the past and may in the future lead to
reductions in the production levels of existing mines, a contraction in the number of existing mines, and the closure
of less efficient mines. Decreased mining activity is likely to lead to a decrease in demand for new mining
machinery. As a result of this cyclicality, we have previously experienced significant fluctuation in our business,
results of operations, and financial condition. We expect that cyclicality in our equipment manufacturing business
may cause us to experience further significant fluctuation in our business, financial condition, or results of
operations.
We are largely dependent on the continued demand for coal, which is subject to economic and climate related
risks.
Over two-thirds of our revenues come from our coal-mining customers. Many of these customers supply coal
as fuel for the production of electricity in the United States and other countries. The pursuit of the most cost
effective form of electricity generation continues to take place throughout the world. Efforts to reduce greenhouse
gas emissions are also affecting the mix of electricity generation sources. If a more economical and/or lower
greenhouse gas emitting form of electricity generation is discovered or developed or if one of more current
alternative sources of energy such as nuclear, solar, natural gas or wind power becomes more widely accepted or
cost effective, the demand for our mining equipment could be adversely affected.
We require cash to service our indebtedness, which reduces the cash available to finance our business.
Our ability to service our indebtedness will depend on our future performance, which will be affected by
prevailing economic conditions and financial, business, regulatory, and other factors. Some of these factors are
beyond our control. If we cannot generate sufficient cash flow from operations to service our indebtedness and to
meet our other obligations and commitments, we might be required to refinance our debt or to dispose of assets to
obtain funds for such purpose. There is no assurance that refinancings or asset dispositions could be effected on a
timely basis or on satisfactory terms, if at all, particularly if current credit market conditions continue or worsen.
Furthermore, there can be no assurance that refinancings or asset dispositions would be permitted by the terms of
our debt instruments.
Our unsecured revolving credit agreement contains certain financial tests. If we do not satisfy such tests, our
lenders could declare a default under our debt instruments, and our indebtedness could be declared immediately due
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