EXHIBIT 99.2
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TRIPLE S PLASTICS, INC. SAFE HARBOR STATEMENT
The Company has made statements in its Current Report on Form 8-K
that constitute forward-looking statements, as defined by the Private
Securities Litigation Reform Act of 1995. These statements are
subject to risks and uncertainties. The statements relate to, and
other forward-looking statements that may be made by the Company may
relate to, information or assumptions about sales, income, earnings
per share, return on equity, return on invested capital, capital
expenditures, working capital, dividends, capital structure, free cash
flow, debt to capitalization ratios, interest rates, internal growth
rates, Euro or other currency conversion plans and related risks,
pending legal proceedings and claims (including environmental
matters), future economic performance, operating income improvements,
synergies, management plans, and goals and objectives for future
operations and growth. These statements generally are accompanied by
words such as "intend," "anticipate," "believe," "estimate,"
"project," "expect," "should," or similar statements. You should
understand that forward looking statements are not guarantees since
there are inherent difficulties in predicting future results. Actual
results could differ materially from those expressed or implied in the
forward looking statements. The factors that are discussed below, as
well as the matters that will be set forth generally in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2001,
and the documents that are incorporated by reference therein could
cause actual results to differ. Some of these factors are described
as criteria for success. Our failure to achieve, or limited success
in achieving, these objectives could result in actual results
differing materially from those expressed or implied in the forward
looking statements. In addition, there can be no assurance that we
have correctly identified and assessed all of the factors affecting or
that may affect the Company or that the publicly available and other
information we received with respect to these factors is complete and
correct.
We wish to caution readers that the following important factors,
among others, in some cases have affected, and in the future could
affect, our actual results and could cause our actual consolidated
results for the first fiscal quarter of 2001 and beyond, to differ
materially from those expressed in any forward-looking statement made
by us or made on behalf of the Company:
Overall World Economies
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Our business depends on the strength of the economies in various
parts of the world, primarily in North America and to a lesser extent
Europe, South America and Asia. These economies are affected by the
strength of their retail economies, which are affected by such factors
as consumer demand and the overall condition of industry. These
economies also may be affected by political instability or other
governmental issues. In recent years, world wide retail economies have
been characterized by increased competition, consolidation, and
overall competitive pressures to be the lowest cost provider in a
given industry.
Cellular Subscriber Base
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Our business largely depends on the strength of the cellular
subscriber base and the demand for new products by existing end users
in the United States, and to some extent, in Europe. In recent years,
the growth rate for the cellular subscriber base has been moderating.
Significant demand changes in the businesses served by our customers,
affect the overall results of our customers, and therefore impact our
performance. The ability and willingness of consumers to acquire new
and more advanced models of cellular phones and other products
produced by our customers, as well as the pricing, purchasing,
financing, operational, advertising and promotional decisions by
intermediaries in the distribution of such products, may affect the
demand for our customers', and therefore our, products.
Nature of the Marketplace
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We compete with other manufacturers of highly engineered
injection-molded thermoplastic components for the telecommunication,
medical and other industries. Many of our competitors produce their
products in areas of the world where labor and other overhead costs
are extremely low compared to our costs. The willingness of some of
our customers to substitute products from these lower-cost
manufacturers, and the perceived absolute or relative overall value of
these products by our customers, including service, quality and
pricing, may impact our overall performance. The current trend among
our customers is to foster high levels of competition among all
suppliers and to demand that manufacturers maintain or reduce product
prices, which may affect our profit margins and other measures of
financial performance.
Our customers also may experience difficulties and delays in new
product development, production, testing and marketing, including but
not limited to, failure to ship new products and technologies when
anticipated, failure of customer acceptance of new technologies and
products, new technology performance failures, product defects, and
other occurrences affecting the slope or speed of decline of the life
cycle pricing curve for our customers' products. Our customers'
performance may also be affected by uncertain international wireless
license renewal procedures and an uncertain regulatory environment
regarding bandwidth allocation.
The combination of these market influences has created an
intensely competitive environment in which our principal customers
continuously evaluate which product suppliers to use, resulting in
pricing pressures, the ongoing introduction of new methodologies to
lower costs and improve customer service.
All of these factors may have a direct impact on our growth and
success, including the amount of product sold to our customers in
terms of units or revenue.
Cost Control
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Our success also depends on our ability to control and reduce our
costs, while seeking to maintain consistently high levels of quality
and customer service. Our objective is retain our customer base and
become their low-cost provider of choice. However, certain factors,
such as the underutilization of some of the Company's plants and
factories resulting in production inefficiencies, start-up expenses,
delays, and increased depreciation costs in connection with the start
of production in new plants, may affect our success in achieving this
objective.
Additionally, difficulty in obtaining raw materials, supplies,
power and other items needed for production of our products at each of
our facilities worldwide may affect our ability to ship product.
Foreign Operations
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Foreign operations are becoming increasingly more important to
our business, as we pursue our objectives of becoming the industry
choice of low-cost provider. There is no assurance that we will
achieve this objective, or achieve it on a consistent basis. Foreign
operations can be affected by factors such as currency devaluation,
other currency fluctuations and the Euro currency conversion, tariffs,
nationalization, exchange controls, interest rates, limitations on
foreign investment in local business and other political, economic and
regulatory risks and difficulties.