Kraft 2004 Annual Report Download - page 11

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Seasonality
Demand for certain of the Company’s products may be influenced by holidays, changes in seasons
or other annual events. Due to the offsetting nature of demands for the Company’s diversified product
portfolio, however, sales of the Company’s products are generally evenly balanced throughout the year.
Environmental Regulation
The Company is subject to various federal, state, local and foreign laws and regulations concerning
the discharge of materials into the environment, or otherwise related to environmental protection,
including the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as
‘‘Superfund’’), which imposes joint and several liability on each responsible party. In 2004, subsidiaries
of the Company were involved in 93 active Superfund and other actions in the United States related to
current operations and certain former or divested operations for which the Company retains liability.
Outside the United States, the Company is subject to applicable multi-national, national and local
environmental laws and regulations in the host countries in which the Company does business. The
Company has specific programs across its international business units designed to meet applicable
environmental compliance requirements.
Although it is not possible to predict precisely the estimated costs for environmental-related
expenditures, compliance with such laws and regulations, including the payment of any remediation
costs and the making of such expenditures, has not had, and is not expected to have, a material adverse
effect on the Company’s results of operations, capital expenditures, financial position, earnings, cash
flows or competitive position.
Forward-Looking and Cautionary Statements
The Company and its representatives may from time to time make written or oral forward-looking
statements, including statements contained in the Company’s filings with the SEC, in its reports to
shareholders and in press releases and investor webcasts. One can identify these forward-looking
statements by use of words such as ‘‘strategy,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘believes,’’ ‘‘will,’’
‘‘continues,’’ ‘‘estimates,’’ ‘‘intends,’’ ‘‘projects,’’ ‘‘goals,’’ ‘‘targets’’ and other words of similar meaning.
One can also identify them by the fact that they do not relate strictly to historical or current facts. The
Company cannot guarantee that any forward-looking statement will be realized, although it believes that
it has been prudent in its plans and assumptions. Achievement of future results is subject to risks,
uncertainties, and the possibility of inaccurate assumptions. Should known or unknown risks or
uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary
materially from those anticipated, estimated, or projected. Investors should bear this in mind as they
consider forward-looking statements and whether to invest in or remain invested in the Company’s
securities. In connection with the ‘‘safe harbor’’ provisions of the Private Securities Litigation Reform Act
of 1995, the Company is hereby identifying important factors that could cause actual results and
outcomes to differ materially from those contained in any forward-looking statement made by or on
behalf of the Company; any such statement is qualified by reference to the following cautionary
statements. The Company elaborates on these and other risks that it faces throughout this document,
particularly in the ‘‘Business Environment’’ section preceding the discussion of operating results. It is not
possible to predict or identify all risk factors. Consequently, the following should not be considered a
complete discussion of all potential risks or uncertainties. The Company does not undertake to update
any forward-looking statement that it may make from time to time.
Each of the Company’s segments is subject to intense competition, changes in consumer
preferences and demand for its products, including low-carbohydrate diet trends, the effects of
changing prices for its raw materials and local economic and market conditions. Their results are
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