Cooper-Standard Holdings (CPS) risk factors, FY2024 10-K

Operational Risks

1. 01Our business, financial condition and results of operations may be adversely impacted by the effects of inflation
2. 02Increases in the costs, or reduced availability, of raw materials and manufactured components may adversely affect our profitability
3. 03Disruptions in the supply chain could have an adverse effect on our business, financial condition, results of operations and cash flows
4. 04Work stoppages or other disruptions to our operations could negatively affect our operations and financial performance
5. 05A disruption in, or the inability to successfully implement upgrades to, our information technology systems, including disruptions relating to cybersecurity as well as data privacy concerns, could adversely affect our business and financial performance
6. 06An inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance
7. 07Our success depends in part on our development of improved products, and our efforts may fail to meet the needs of customers on a timely or cost-effective basis
8. 08We may incur material losses and costs as a result of product liability and warranty and recall claims that may be brought against us
9. 09technologies, including any new fuel and emissions technology and systems being brought into production, to allow us to accurately estimate future warranty or recall costs
10. 10Our commitment to drive value through culture, innovation and results is dependent on our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce
11. 11Our financial condition and results of operations have been previously, and may in the future be, adversely affected by public health events

Strategic Risks

1. 12We are highly dependent on the automotive industry. A prolonged or material contraction in automotive sales and production volumes could adversely affect our business, results of operations and financial condition
2. 13We may not realize sales represented by awarded business, which could adversely affect our business, financial condition, results of operations and cash flows
3. 14Pricing pressures and other commercial adjustments may adversely affect our business
4. 15Our business could be adversely affected if we lose any of our largest customers or significant platforms
5. 16We operate in a highly competitive industry and efforts by our competitors to gain market share could adversely affect our financial performance
6. 17The benefits of our continuous improvement programs and other cost savings plans may not be fully realized
7. 18We may continue to incur significant costs related to manufacturing facility closings or consolidation which could have an adverse effect on our financial condition
8. 19We are subject to other risks associated with our international operations
9. 20The occurrence of any of these risks may adversely affect the results of operations and financial condition of our international operations and our business as a whole
10. 21A portion of our operations are conducted by joint ventures which have unique risks
11. 22Any acquisitions or divestitures we make may be unsuccessful, may take longer than anticipated or may negatively impact our business, financial condition, results of operations and cash flows

Financial Risks

1. 23Global, market and economic conditions could impact our ability to access liquidity sources
2. 24Developments in new or ongoing conflicts around the world and related disruptions could adversely affect our liquidity, business, and results of operations
3. 25We have a substantial amount of indebtedness, which could have a material adverse effect on our financial condition and our ability to obtain financing in the future and to react to changes in our business
4. 26Our variable rate indebtedness subjects us to interest rate risk, which could cause our indebtedness service obligations to increase significantly
5. 27Our debt instruments impose significant operating and financial restrictions on us and our subsidiaries
6. 28Moreover, our ABL Facility provides the agent considerable discretion to impose reserves, which could materially reduce the amount of borrowings that would otherwise be available to us
7. 29Our expected annual effective tax rate and cash tax liability could be volatile and could materially change as a result of changes in many items including mix of earnings, debt and capital structure and other factors
8. 30Our working capital requirements may negatively affect our liquidity and capital resources
9. 31Foreign currency exchange rate fluctuations could materially impact our operating results
10. 32Impairment charges relating to our goodwill, long-lived assets or intangible assets could adversely affect our results
11. 33Certain of our pension plans are currently underfunded, and we may have to make cash contributions to the plans, reducing the cash available for our business
12. 34Significant changes in discount rates, the actual return on pension assets and other factors could adversely affect our liquidity, results of operations and financial condition
13. 35Failure to maintain effective controls and procedures could adversely impact our business, financial condition and results of operations
14. 36We operate as a holding company and depend on our subsidiaries for cash to satisfy the obligations of the holding company
15. 37We may not be able to procure insurance at reasonable rates to fully meet our needs

Legal and Compliance Risks

1. 38We are involved from time to time in legal and regulatory proceedings, claims or investigations which could have an adverse impact on our results of operations and financial condition
2. 39If we are unable to protect our intellectual property or if a third party challenges our intellectual property rights, our business could be adversely affected
3. 40We may be adversely affected by laws and regulations, including environmental, health and safety laws and regulations