MSA Safety (MSA) risk factors, FY2024 10-K

RISKS RELATED TO LEGAL AND REGULATORY CHALLENGES

1. 01Claims of injuries or potential safety issues or quality concerns could be made against our various subsidiaries
2. 02Our subsidiaries may experience losses from product liability claims, which could have a material adverse effect on our business, operating results, financial condition and liquidity
3. 03Our ability to market and sell our products and solutions is subject to existing government laws, regulations and standards. Changes in such laws, regulations and standards or our failure to comply with them could materially and adversely affect our results of operations
4. 04We are subject to various federal, state and local laws and regulations across our global organization and any violation of these laws or regulations could adversely affect our results of operations
5. 05We are subject to various environmental laws and any violation of these laws could adversely affect our results of operations
6. 06We are subject to risks related to our environmental, social and governance activities and disclosures
7. 07We are subject to various U.S. and foreign tax laws and any changes in these laws related to the taxation of businesses and resolutions of tax disputes could adversely affect our results of operations

RISKS RELATED TO SUPPLY AND MANUFACTURING

1. 08Our future results are subject to the risk that purchased components and materials are unavailable or available at excessive cost due to material shortages, tariff changes, excessive demand, currency fluctuation, inflationary pressure and other factors
2. 09Our plans to continue to improve productivity and reduce complexity may not be successful, which could adversely affect our ability to compete
3. 10We are subject to risks related to various U.S. and foreign climate regulations and any changes in these regulations related to climate disclosure and penalties for non-compliance could adversely affect our results of operations

RISKS RELATED TO ECONOMIC, MARKET AND COMPETITIVE CONDITIONS

1. 11Unfavorable economic and market conditions could materially and adversely affect our business, results of operations and financial condition
2. 12Pandemics or disease outbreaks may cause unfavorable economic or market conditions which could impact demand patterns and/or disrupt global supply chains and manufacturing operations. Collectively, these outcomes could materially and adversely affect our business, results of operations and financial condition
3. 13A reduction in the spending patterns of government customers or delays in obtaining government approval for our products and solutions could materially and adversely affect our net sales, earnings and cash flow
4. 14The markets in which we operate are highly competitive, and some of our competitors have greater financial and other resources than we do. The competitive pressures faced by us could materially and adversely affect our business, results of operations and financial condition

RISKS RELATED TO NEW AND ADJACENT INITIATIVES

1. 15Our plans to improve future profitability through restructuring programs may not be successful and could lead to unintended consequences
2. 16Our inability to successfully identify, consummate and integrate current and future acquisitions or to realize anticipated cost savings and other benefits could adversely affect our business. Additionally, divestitures may expose us to alleged potential liabilities which could adversely affect our business
3. 17If we fail to introduce successful new products or solutions or extend our existing portfolio, we could lose our market position and our financial performance could be materially and adversely affected

RISKS RELATED TO CYBERSECURITY OR MISAPPROPRIATION OF OUR CRITICAL INFORMATION

1. 18A failure of our information systems or a cybersecurity breach could materially and adversely affect our business, results of operations and financial condition
2. 19Our continued success depends on our ability to protect our intellectual property. If we are unable to protect our intellectual property, our business could be materially and adversely affected

RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

1. 20If we lose any of our key personnel or are unable to attract, train and/or retain qualified personnel or properly plan the succession of senior management, our ability to manage our business and continue our growth could be negatively impacted
2. 21We may be unable to hire, retain or develop a highly skilled and diverse global workforce or effectively manage changes in our workforce and respond to shifts in labor availability

RISKS RELATED TO DOING BUSINESS INTERNATIONALLY

1. 22We have significant international operations and are subject to the risks of doing business in foreign countries and global supply chains
2. 23Because we derive a significant portion of our sales from the operations of our foreign subsidiaries, future currency exchange rate fluctuations could adversely affect our results of operations and financial condition and could affect the comparability of our results between financial periods
3. 24We benefit from free trade laws and regulations, such as the United States-Mexico-Canada Agreement and any changes to these laws and regulations could adversely affect our results of operations
4. 25Damage to the reputation of MSA or to one or more of our Company brands could adversely affect our business
5. 26If our goodwill, other intangible assets and long-lived assets become impaired, we may be required to record significant charges to earnings
6. 27Failure to effectively harness and/or protect Company data or to incorporate, or improperly incorporating, Artificial Intelligence (AI) could damage our business
7. 28Risks related to our defined benefit pension and other post-retirement plans could adversely affect our results of operations and cash flow
8. 29We have a substantial amount of debt upon which we are required to make scheduled interest and principal payments and we may incur additional debt in the future. A significant portion of our debt bears interest at variable rates that may increase in the future