Andersons (ANDE) risk factors, FY2024 10-K

Risks Related to our Business and Industry

1. 01Our business is affected by the supply and demand of commodities and is sensitive to factors outside of our control. Adverse price movements could negatively affect our profitability and results of operations
2. 02Some of our business segments operate in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations
3. 03We are required to carry significant amounts of inventory across all of our businesses. If a substantial portion of our inventory becomes damaged or obsolete, its value would decrease, and have an adverse impact on the Company's financial results
4. 04Our indebtedness could negatively affect our financial condition, decrease our liquidity and impair our ability to operate the business
5. 05We face significant competition and pricing pressure from other companies in our industries. If we are unable to compete effectively with these companies, our sales and profit margins would decrease, and our earnings and cash flows would be adversely affected
6. 06Our Trade and Renewables businesses use derivative contracts to reduce the impact of volatility in the commodity markets. Non-performance by the counterparties to those contracts could adversely affect our future results of operations and financial position
7. 07We face exposure to country risk in countries that face financial, political, and economic unrest through unsecured credit, inventory, forward contract risk or payment origination that could adversely affect our future results of operations, financial position, and cash flows
8. 08Our business involves considerable safety risks. Significant unexpected costs and liabilities would have an adverse effect on our profitability and overall financial position
9. 09We own several aging assets that require regular assessment and continual investments in maintenance capital. If we experience catastrophic damage to our facilities due to structural integrity, this could result in disruptions to operations, potential safety incidents and losses not covered by insurance
10. 10Adverse weather conditions, including as a result of climate change, may adversely affect the availability, quality and price of agricultural commodities and agricultural commodity products, as well as our operations and operating results
11. 11The Andersons, Inc. | 2024 Form 10-K | 8
12. 12The Company faces risks related to international conflicts, acts of terrorism and wars that may adversely impact the Company's financial condition or results of operations
13. 13We rely on a limited number of suppliers for certain of our raw materials and other products and the loss of one or several of these suppliers could increase our costs and have a material adverse effect on any one of our business segments
14. 14We are subject to global and regional economic downturns and related risks including health epidemics, pandemics and similar outbreaks
15. 15The Company may not be able to effectively integrate businesses it acquires
16. 16If our goodwill, amortizable intangible assets and long-lived assets become impaired, then we could be required to record a significant charge to earnings
17. 17Our business depends on our ability to successfully manage productivity improvements and ongoing organizational change, including our ability to attract and retain talented employees
18. 18Compliance with evolving regulations regarding disclosure of emissions and metrics and/or climate change may impact our reputation, increase our operating costs, and reduce the value of our assets and products
19. 19The Company faces transition risks and physical risks related to climate change
20. 20The Company's information technology systems may impose limitations or failures which may affect the Company's ability to conduct its business
21. 21We are at risk of cyber-incidents or other security breaches that could undermine our ability to operate effectively
22. 22A change in tax laws or regulations of any federal, state or international jurisdiction in which we operate could increase our tax burden and otherwise adversely affect our financial position, results of operations, cash flows and liquidity
23. 23We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, and uninsured judgments or a rise in insurance premiums may adversely impact our business, financial condition and results of operations