The company faces risks from economic and political uncertainty, geopolitical risks, public health crises, changes in customer orders, contract disputes, product mix shifts, acquisition integration challenges, divestiture execution difficulties, business realignment costs, raw material availability and cost increases, insurance and employee benefit costs, legal and regulatory developments, supply chain and labor disruptions, international conflicts, cybersecurity risks, legal proceedings, global market reactions to trade policies, manufacturing activity, air travel trends, currency exchange rates, market entry difficulties, economic conditions (inflation, deflation, interest rates, credit availability), and obtaining regulatory approvals. Interest rate risk from variable rate debt is also mentioned.
Financial Upside
The company anticipates profitable growth opportunities in aerospace and defense, industrial equipment, transportation, off-highway, energy, and HVAC markets. Divestitures of non-core businesses (composites and fuel containment, filtration) are expected to generate proceeds of $560 million and $66 million, respectively. Strong cash generation and deployment, along with a share repurchase program, are also positive factors.
