Ampco Pittsburgh (AP) risk factors, FY2024 10-K

Other

1. 01RISKS RELATEFD TO OUR BUSINESS AND INDUSTRY
2. 02Cyclical demand for products and economic downturns could reduce the demand for, and sales of, our products, which could adversely affect our margins and profitability
3. 03Excess global capacity in the steel industry could lower prices for our products, which could adversely affect our sales, margins and profitability, as well as the collectability of our receivables and the salability of our in-process inventory
4. 04We may not realize the expected benefits from any restructuring or realignment initiatives or improvement efforts that we have taken or may take in the future
5. 05The ultimate liability of our subsidiaries for claims alleging personal injury from exposure to asbestos-containing components historically used in certain products of our subsidiaries could have a material adverse effect on our financial condition, results of operations or liquidity in the future
6. 06We could face limitations in availability of capital to fund our strategic plans. Additionally, deterioration in our credit profile or increases in interest rates could increase our costs of borrowing and further limit our access to capital markets and commercial credit
7. 07Our dependence on certain equipment may cause an interruption in our production if such equipment is out of operation for an extended period of time, which could result in lower sales and profitability
8. 08Increases in energy and commodity prices, reductions in electricity and natural gas supply or shortages of key production materials could adversely impact our production, which could result in lower profitability or higher losses
9. 09Fluctuation in the value of the U.S. dollar relative to other currencies could adversely affect our business, results of operations and financial condition
10. 10A change in the existing regulatory environment could negatively affect our operations, financial performance and liquidity
11. 11Pandemics and geopolitical conflicts may cause disruptions to our business and the industries in which we operate
12. 12A work stoppage or other industrial action on the part of any of our unions could be disruptive to our operations
13. 13A reduction in the level of our export sales, as well as other economic factors in foreign countries, could have an adverse impact on our financial results
14. 14We may not be able to scale our operational capacity in line with demand for our products
15. 15We are a party to sale-leaseback financing transactions, which creates the risk of loss if we default
16. 16Failure of financial institutions or the need of liquidity from third-party sources by financial institutions may affect our access, or our customers’ access, to capital resources
17. 17We generate approximately 10% of the sales in the FCEP segment from one customer, and the loss of, or significant reduction in, the orders of such customer could have a material adverse effect on the segment
18. 18Uncertainty related to environmental regulation and industry standards, as well as the physical risks of climate change, could impact our results of operations and financial position

RISKS RELATED TO OWNERSHIP OF OUR SECURITIES

1. 19We may not be able to satisfy the continued listing requirements of the New York Stock Exchange and the NYSE American Exchange for our common stock and Series A warrants, respectively
2. 20or we do not make sufficient progress satisfactory to the New York Stock Exchange, our common stock could be de-listed from the New York Stock Exchange, which could impact potential liquidity for our shareholders
3. 21If we fail to maintain an effective system of internal control, we may not be able to accurately determine our financial results or prevent fraud. As a result, our shareholders could lose confidence in our financial results, which could harm the business and the value of our securities
4. 22Actions of activist shareholders with respect to us or our securities could be disruptive and potentially costly and the possibility that activist shareholders may contest, or seek changes conflicting with, our strategic direction could cause uncertainty about the strategic direction of our business
5. 23Holders of Series A warrants will have no rights as holders of our common stock until they exercise their Series A warrants and acquire our common stock
6. 24The market price of our common stock may not exceed the exercise price of the Series A warrants at such time as the holder desires to exercise such Series A warrants and, accordingly, the Series A warrants may have no value
7. 25Because the Series A warrants are executory contracts, they may have no value in a bankruptcy or reorganization proceeding
8. 26Changes in the global economic environment, inflation, elevated interest rates, recessions or prolonged periods of slow economic growth, and global instability and actual and threatened geopolitical conflict, could have an adverse effect on our industry and business, as well as those of our customers and suppliers
9. 27Potential attacks on information technology infrastructure and other cyber-based business disruptions could have a material adverse effect on our financial condition, results of operations and liquidity
10. 28and litigation. Although we have taken steps to address these concerns, there can be no assurance a system failure or data security breach will not have a material adverse effect on our financial condition, results of operations and liquidity