The company faces risks from asbestos-related lawsuits, environmental remediation costs at both owned and non-owned sites, and potential fluctuations in the fair value of financial instruments, particularly long-term debt. Acquisitions, while potentially positive, introduce integration costs and dilutive effects on operating margins. Customer inventory normalization and delays in project spending also pose risks to sales. General economic conditions and competition in the markets served are also mentioned as potential risks.
Financial Upside
Acquisitions of Amplifier Research and Paragon Medical, along with Operational Excellence initiatives, are expected to positively impact future results. Strong demand in Europe and Asia, and favorable foreign currency translation, are contributing to increased international sales. Higher net income and cash provided by operating activities are also positive indicators. A decrease in the debt-to-capital ratio and increased borrowing capacity are further positive signs.
