The company faces market risk from currency fluctuations, interest rates, stock prices, and commodity prices. Legal proceedings, including environmental lawsuits and government investigations (e.g., CPSC), pose potential liabilities. Tightened credit markets could impact the company, its customers, and suppliers. Supply chain disruptions, including those related to natural disasters, pandemics, and political unrest, are also risks. The company's reliance on significant customers and franchisees is a vulnerability.
Financial Upside
The company's divestiture of the Infrastructure business generated $728.5 million in net proceeds. A Global Cost Reduction Program aims for $2 billion in pre-tax run-rate savings by 2025, improving profitability and cash flow. The program includes strategic sourcing, operational excellence, footprint rationalization, and complexity reduction. The company intends to return excess capital to shareholders through dividends and share repurchases.
