The company faces risks from fluctuating industrial activity and economic conditions globally, including financial market uncertainties, pricing pressures (inflation, rising interest rates), competitive factors, and capital spending levels in certain industries. Catastrophic events, terrorist attacks, and political/economic conditions in foreign markets also pose risks. The company's ability to successfully integrate acquisitions and manage legal proceedings (including asbestos-related lawsuits) is uncertain. Currency exchange rates and supply chain conditions are also potential risks.
Financial Upside
The company's recent acquisitions (Mott, Iridian, STC) are expected to enhance its material science technology and expand into high-value markets. The sale of Alfa Valvole and Micropump generated gains. The company has sufficient cash and borrowing capacity to fund operations, capital expenditures, and potential future acquisitions. Favorable price/cost and operational productivity are also positive factors.
