Ingevity (NGVT) risk factors, FY2024 10-K

Operational Risks

1. 01The repositioning of our Performance Chemicals business has reduced our net sales and may otherwise adversely affect our financial condition and results of operations during this transition period
2. 02Our review of strategic alternatives for the industrial specialties product line and North Charleston, South Carolina crude tall oil (“CTO”) refinery may not result in a transaction and any transaction entered into may not yield the expected results or benefits
3. 03We are dependent upon third parties for the provision of certain critical operating services at several of our facilities
4. 04Disruptions at any of our facilities could negatively impact our production, financial condition and results of operations
5. 05We purchase a variety of raw materials, which are subject to pricing pressures and limited availability; inability to procure these raw materials or to pass on price increases could negatively impact our operations or financial results
6. 06Disruptions within our supply chain could negatively impact, our production, financial condition and results of operations

Market Risks

1. 07Adverse conditions in the automotive market may negatively impact demand for our automotive carbon products
2. 08The Company’s road technologies product line is heavily dependent on government infrastructure spending
3. 09Certain of the Company’s products are sold into cyclical end-markets, such as the automotive market and the apparel market, which are impacted by changes in consumer and industrial demand
4. 10We face competition from new technologies and new or emerging competitors
5. 11technological innovations in our end-use markets on a competitive basis, our financial condition and results of operations could be adversely affected
6. 12Certain of our products face competition from substitute products where the costs of different raw material inputs can impact the price competitiveness of our products and negatively impact our sales and/or profits as we respond to substitute product competition
7. 13We are dependent on certain large customers
8. 14We are dependent on attracting and retaining key personnel
9. 15The inability to make or effectively integrate future acquisitions may negatively affect our results
10. 16As we rely on information technologies to conduct our business, cyber-attacks, data and privacy breaches, or a failure of information technology systems could disrupt our operations and expose us to liability, which could cause our business and reputation to suffer

International Operations Risks

1. 17We are exposed to the risks inherent in international sales and operations

Legal and Regulatory Risks

1. 18From time to time, we may be engaged in legal actions associated with our intellectual property rights; if we are unsuccessful, these could potentially result in an adverse effect on our financial condition and results of operations
2. 19Certain elements of our strategic growth are dependent on the adoption of more stringent air quality standards around the world
3. 20Our business involves hazards associated with chemical manufacturing, storage, transportation and disposal; the legal and regulatory environment related to such chemicals could require expenditures or changes to our product formulations and operations
4. 21Our operations are subject to a wide range of general and industry-specific environmental laws and regulations; changes to this legal and regulatory landscape could limit our business activities and increase our operating costs
5. 22Adverse weather conditions and other environmental impacts (such as climate change and extreme weather) may impact our operations and the demand for some of our products, which could negatively affect our financial condition and results of operations

Financial and Economic Risks

1. 23We may be adversely affected by general global economic and financial conditions beyond our control
2. 24Inflation could result in an adverse impact on our results of operations
3. 25Challenges in the commercial and credit environment may materially adversely affect Ingevity’s future access to capital