Koppers Holdings (KOP) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Koppers Holdings Inc. 2024 Annual Report
2. 02We face risks related to our substantial indebtedness
3. 03limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who may be less highly leveraged
4. 04Our debt agreements contain restrictions that limit our flexibility in operating our business
5. 05sell or otherwise transfer assets
6. 06We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
7. 07Our products are sold primarily into markets that historically have been cyclical, such as wood preservation, aluminum and specialty chemicals
8. 08We are dependent on major customers for a significant portion of our net sales, and the loss of one or more of our major customers could result in a significant reduction in our profitability as a whole or the profitability of a particular product
9. 09We may not be able to implement price increases sufficient to compensate for increased operating costs and raw material costs in our businesses
10. 10The development of new technologies or changes in our customers’ products could reduce the demand for our products
11. 11As a producer of wood preservatives, we may incur additional costs under our warranties or otherwise for claims related to treated-wood products
12. 12Hazards associated with chemical manufacturing may cause suspensions or interruptions of our operations
13. 13chemical spills and other discharges or releases of toxic or hazardous wastes, substances or gases
14. 14We are subject to extensive environmental laws and regulations and may incur significant costs as a result of continued compliance with, violations of or liabilities under environmental laws and regulations
15. 15other matters relating to environmental protection, health and safety
16. 16Future climate change regulation could result in increased operating costs and reduced demand for our products
17. 17The insurance that we maintain may not fully cover all potential exposures
18. 18Adverse weather conditions or natural disasters, including conditions associated with or exacerbated by climate change, may reduce our operating results
19. 19Beazer East and Beazer Limited may not continue to meet their obligations to indemnify us
20. 20Litigation and other proceedings against us could be costly and time-consuming to defend, and due to the nature of our business and products, we may be liable for damages arising out of our acts or omissions, which may have a material adverse effect on us
21. 21Intellectual property rights are important to our business. If our patents are declared invalid or our trade secrets become known to our competitors, our ability to compete may be adversely affected
22. 22We may be required to recognize impairment charges for our long-lived assets
23. 23We are subject to risks inherent in foreign operations, including additional legal regulation and changes in social, political and economic conditions
24. 24Labor disputes, labor shortages and increased turnover or increases in employee and employee-related costs could disrupt our operations, divert the attention of our management and may cause a decline in our production and a reduction in our profitability
25. 25Our post-retirement obligations are currently underfunded. We may be required to make significant cash payments to our pension and other post-retirement plans, which will reduce the cash available for our business
26. 26We may incur significant charges in the event we close all or part of a manufacturing plant or facility
27. 27We may be subject to information technology systems failures, network disruptions and breaches of data security, which could harm our relationships with our customers and third-party business partners, subject us to negative publicity and litigation and cause substantial harm to our business

Risks Related to Our Common Stock

1. 28You may not receive dividends because our board of directors could, in its discretion, depart from or change our dividend policy at any time
2. 29Provisions of our charter documents may inhibit a takeover, which could negatively affect our stock price
3. 30Under Pennsylvania law, cumulative voting rights are available to the holders of our common stock if our Articles of Incorporation have not negated cumulative voting. Our Articles of Incorporation provide that our shareholders do not have the right to cumulative votes in the election of directors
4. 31Our Bylaws provide that shareholders seeking to nominate candidates for election as directors or to bring business before an annual meeting of shareholders must provide timely notice of their proposal in writing to the corporate secretary
5. 32Conditions in the global economy and global capital markets may adversely affect our results of operations, financial condition and cash flows
6. 33Global economic issues could prevent us from accurately forecasting demand for our products, which could have a material adverse effect on our results of operations and our financial condition
7. 34Health concerns arising from the outbreak of a health epidemic or pandemic may have an adverse effect on our business, operating results and financial condition
8. 35We may not be able to compete successfully in any or all of the industry segments in which we operate
9. 36Our products may be rendered obsolete or less attractive by changes in regulatory, legislative or industry requirements
10. 37Changes in applicable tax regulations and resolutions of tax disputes could negatively affect our financial results
11. 38Our strategy to selectively pursue complementary acquisitions or divestitures may present unforeseen obstacles, risks or costs
12. 39We depend on our senior management team and other key employees and the loss of these employees could adversely affect our business
13. 40There has been significant volatility in the market price and trading volume of equity securities, which is unrelated to the financial performance of the companies issuing the securities. These types of broad market fluctuations may negatively affect the market price of our common stock
14. 41changes in our current dividend policy or the elimination, reduction or suspension of our dividend
15. 42If securities analysts or industry analysts publish negative research or reports, or do not publish reports about our business, our share price and trading volume could decline
16. 43Future sales, or the perception of future sales, of a substantial amount of our common stock may depress the price of the shares of our common stock
17. 44Our ability to raise capital in the future may be limited
18. 45The failure of financial institutions or transactional counterparties could adversely affect our current and projected business operations and our liquidity, financial condition and results of operations