The company faces risks from macroeconomic conditions (elevated interest rates, capital market volatility), potential supply chain disruptions, higher commodity costs, and intense competition. Geopolitical instability (Middle East/Ukraine conflict, China/Taiwan tensions) and potential shifts in US and foreign trade policies add further uncertainty. The company's reliance on key customers and third-party service providers also presents risks. Environmental matters, including remediation costs, and product liability claims are also potential risks.
Financial Upside
The company's net sales and volume increased significantly in the current period, primarily due to lapping impacts from a prior cyberattack. Cost savings from a streamlined operating model and divestitures are expected to improve margins. Strong short-term and long-term credit ratings and access to capital markets support liquidity. The company anticipates positive cash flows from operations and expects to maintain compliance with credit agreement covenants.
