Astec Industries (ASTE) risk factors, FY2024 10-K

Other

1. 01Downturns in the general economy or decreases in government infrastructure spending or commercial and residential construction spending may adversely affect our revenues and operating results
2. 02A decrease or delay in government funding of highway construction and maintenance may cause our revenues and profits to decrease
3. 03The cyclical nature of our industry and the product mix of the equipment we sell may cause adverse fluctuations to our revenues and operating results
4. 04Changes in interest rates and the lack of credit and third-party financing arrangements for our customers could reduce demand for our products

Market Condition Risks

1. 05Competition could reduce revenue from our products and services and cause us to lose market share, and our ability to compete in international jurisdictions is dependent upon trade policies, which are subject to change
2. 06Our operations in foreign countries, and continued expansion into additional international markets, could expose us to risks inherent in doing business outside of the United States
3. 07Our ability to understand our customers' specific preferences and requirements, and to develop, manufacture and market products that meet customer demand as we expand into additional international markets, could significantly affect our business results
4. 08Our international sales and associated operating results are subject to currency exchange risk
5. 09Our profitability may be negatively affected by changes in the availability and price of certain parts, components and raw materials
6. 10We may be adversely affected by any natural or man-made disruptions to our distribution and manufacturing facilities, as well as disruptions and equipment-related issues

Strategic Performance Risks

1. 11We may not fully sustain targeted performance improvements and other benefits realized from our OneASTEC business model
2. 12Failure to successfully complete restructuring activities could negatively affect our operations
3. 13As part of our growth strategy, we may pursue acquisitions in the future and may not be successful in completing such acquisitions on favorable terms or be able to realize the anticipated benefits from such acquisitions

Financial Risks

1. 14We may be unsuccessful in complying with the financial ratio covenants or other provisions of our credit agreement
2. 15We are subject to income taxes in the United States and certain foreign jurisdictions, and changes to the tax codes, effective tax rates and accounting principles related thereto could negatively impact our results of operations
3. 16We may not be able to adequately manage the risks associated with our products and systems, including increased warranty costs
4. 17Goodwill is subject to impairment assessments at least annually (or more frequently when events or changes in circumstances indicate that impairment may have occurred). Other intangible assets are subject to impairment assessments if conditions exist that indicate the carrying value may not be recoverable

Human Capital Risks

1. 18Our performance could suffer if we cannot maintain our culture as well as attract, retain and engage our employees
2. 19Failure to retain our key personnel or attract additional key personnel as required and the impact of our recent leadership changes may adversely impact our ability to implement our business plan and our results of operations could be materially and adversely affected

Legal, Regulatory and Compliance Risks

1. 20We are subject to an ongoing risk of product liability claims and other litigation arising in the ordinary course of business
2. 21We are subject to significant governmental regulation and if we fail to comply with such regulation or if we become subject to increased regulation, we may incur significant costs related to penalties, remedial measures or increased compliance requirements
3. 22sanctions, remedial measures, legal expenses and reputational damage, all of which could have an adverse impact on our business, financial condition, results of operations and liquidity
4. 23We are subject to a variety of legal proceedings, the outcome of which may be unfavorable to us
5. 24Environmental, Social and Governance risks could adversely affect our reputation and shareholder, employee, customer and third party relationships and may negatively affect our stock price
6. 25If we are unable to protect our proprietary technology from infringement or if our technology infringes technology owned by others, then the demand for our products may decrease or we may be forced to modify our products, which could increase our costs
7. 26Our operations may be adversely affected by any disruption in our information technology systems
8. 27Security breaches and other disruptions to our information technology infrastructure amid a general worldwide increase in threats and more sophisticated and targeted cybercrime could compromise our and our customers' and suppliers' information, which could expose us to liability and damage our reputation
9. 28We may not be able to successfully implement our new enterprise resource planning system