Stoneridge (SRI) risk factors, FY2024 10-K

Other

1. 01Our business is cyclical and a downturn in the commercial, automotive, off-highway and agricultural vehicle markets as well as overall economic conditions could reduce our sales and profitability
2. 02The loss or insolvency of any of our principal customers would adversely affect our future results
3. 03The Company’s estimated sourced future sales from awarded programs may not be realized
4. 04We must implement and sustain a competitive technological advantage in producing our products to compete effectively
5. 05The discontinuation of, loss of business or lack of commercial success, with respect to a particular vehicle model for which the Company is a significant supplier could reduce the Company’s sales and harm its profitability
6. 06Public health crises and other global health pandemics, epidemics or disease outbreaks could adversely impact our business, results of operation and financial condition

Financial Risks

1. 07We have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity
2. 08Our debt obligations could limit our flexibility in managing our business and expose us to risks
3. 09Covenants in our Credit Facility may limit our ability to pursue our business strategies
4. 10Our ability to comply with these covenants as well as the negative covenants under the terms of our indebtedness may be affected by events beyond our control
5. 11Our effective tax rate and future cash tax liability could be impacted by various factors, such as changes in the mix of earnings between jurisdictions, changes in the recognition and/or release of valuation allowances, and the enactment of tax laws or changes in tax laws, regulations, or accounting principles

Risks Related to Products, Pricing and Supply

1. 12We are dependent on the availability and price of raw materials, components and other supplies
2. 13The prices that we can charge our customers are typically predetermined and we bear the risk of costs in excess of our estimates, in addition to the risk of adverse effects resulting from general customer demands for cost reductions and quality improvements
3. 14We have limited or no redundancy for certain of our manufacturing facilities, and therefore damage or disruption to those facilities could interrupt our operations, increase our costs of doing business and impair our ability to deliver our products on a timely basis
4. 15We rely on independent dealers and distributors to sell certain products in the aftermarket sales channel and a disruption to this channel would harm our business
5. 16We are subject to risks related to our international operations
6. 17Changes in U.S. administrative policy, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on our business
7. 18We operate our business on a global basis and policy changes affecting international trade could adversely impact the demand for our products and our competitive position

Strategic Performance Risks

1. 19Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance
2. 20We may not be able to successfully integrate acquisitions into our business or may otherwise be unable to benefit from pursuing acquisitions
3. 21If we do not respond appropriately, the evolution of the global transportation industry toward electrification and shared mobility could adversely affect our business
4. 22Increased or unexpected product warranty claims could adversely affect us
5. 23We may incur material product liability costs
6. 24If we fail to protect our intellectual property rights or maintain our rights to use licensed intellectual property or are found liable for infringing the rights of others, our business could be adversely affected
7. 25We may be subject to risks relating to our information technology systems and cybersecurity
8. 26A failure of our information technology (IT) networks and systems, or the inability to successfully implement upgrades to our enterprise resource planning (ERP) systems, could adversely impact our business and operations
9. 27Privacy and security concerns relating to the Company’s current or future products and services could damage its reputation and deter current and potential users from using them
10. 28Compliance with environmental and other governmental regulations could be costly and require us to make significant expenditures
11. 29An emphasis on global climate change and other environmental, social, and corporate governance ("ESG") matters by various stakeholders could negatively affect our business