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P a g e
TRINIDAD CEMENT LIMITED
SECTION 8: RISK FACTORS
(Continued)
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the budgetary spending patterns of customers;
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changes in fuel and energy prices
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changes in construction and design costs;
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power outages and other unexpected delays;
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the Company’s ability to control costs and maintain quality;
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employment levels; and
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regional or general economic conditions.
As a result, the Company’s operating results in any particular quarter may not be indicative of the results
that can be expected for any other quarter. Furthermore, changes in trends in the cement and concrete
industry or in the Company’s geographic markets could have material adverse effects on its business,
financial condition, results of operations, liquidity and cash flows.
The Company’s net revenue attributable to infrastructure projects could be negatively impacted by a
decrease or delay in governmental spending.
The business of the Company depends, in part, on the level of governmental spending on infrastructure
projects in the markets in which the Company operates. Reduced levels of governmental funding for public
works projects, or delays in that funding; whether owing to reduced government revenue as a result of
suppressed energy prices worldwide or otherwise, could adversely affect the business, financial condition,
results of operations, liquidity and cash flows of the Company.
Trade union negotiations of employee contracts, work stoppages and other labour relations matters may
result in increases in the Company’s operating costs, disruptions in the Company’s business and
decreases in the Company’s earnings.
Generally, with the exception of management, all of the employees of the Company are represented by
trade unions. Trade unions negotiate employment contracts on behalf of their member employees, which
generally have terms of two to three years. If the Company is unable to negotiate acceptable new contracts
or extensions of existing contracts with these unions, the Company could experience work stoppages by the
affected employees. In addition, any new contracts or extensions could result in increased operating costs
attributable to trade union employees. If any such work stoppages were to occur, the Company could
experience a significant disruption of its operations and higher ongoing labor costs, which could materially
and adversely affect the business, financial position, results of operations, liquidity and cash flows of the
Company.
In addition, existing collective bargaining agreements may not prevent a strike or work stoppage at the
Company’s facilities in the future, and any such work stoppage could have a material adverse effect on the
Company’s earnings and financial condition.
Participation in defined benefit pension plans may impact the business, financial position, results of
operations, liquidity and cash flows of the Company.
Many of the Company’s subsidiaries currently have defined benefit pension plans. Such plans define the
amount of pension benefit that an employee will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
