Trimas (TRS) risk factors, FY2024 10-K

Risks Relating to Our Business

1. 01Our businesses depend upon general economic conditions and we serve some customers in highly cyclical industries; as such, we may be subject to the loss of sales and margins due to an economic downturn or recession
2. 02Many of the markets we serve are highly competitive, which could limit sales volumes and reduce our operating margins
3. 03We may be unable to successfully implement our business strategies and achieve our strategic and financial objectives
4. 04Increases in our raw material or energy costs or the loss of critical suppliers could adversely affect our profitability and other financial results
5. 05Our ability to deliver products that satisfy customer requirements is dependent on the performance of our subcontractors and suppliers, as well as on the availability of raw materials and other components
6. 06We have significant goodwill and intangible assets, and future impairment of our goodwill and intangible assets could have a material negative impact on our financial results
7. 07Our business may be exposed to risks associated with an increasingly concentrated customer base
8. 08We are dependent on our manufacturing facilities for the production of our highly-engineered products, which subjects us to risks associated with disruptions and changing technology and manufacturing techniques that could place us at a competitive disadvantage
9. 09A major failure of our information systems could harm our business; increased cybersecurity threats and more sophisticated and targeted cybersecurity attacks could pose a risk to our systems, networks and products
10. 10A growing portion of our sales and earnings may be derived from international sources, which exposes us to certain risks which may adversely affect our financial results and impact our ability to service debt
11. 11Our acquisition and disposition agreements by which we have acquired or sold companies, include indemnification provisions that may not fully protect us and may result in unexpected liabilities
12. 12Expectations relating to sustainability and ESG considerations could expose us to potential liabilities, increased costs, reputational harm and other adverse effects on our business

Regulatory, Legal and Environmental Risks

1. 13Significant developments in U.S. trade policies could have a material adverse effect on us and our financial condition and results of operations
2. 14Compliance with and changes in tax laws, including tax reform legislation in the United States, could materially and adversely impact our financial condition, results of operations and cash flows
3. 15We may face liability associated with the use of products for which patent ownership or other intellectual property rights are claimed
4. 16We may be unable to adequately protect our intellectual property
5. 17We may incur material losses and costs as a result of product liability, recall and warranty claims brought against us
6. 18Our business may be materially and adversely affected by compliance obligations and liabilities under environmental laws and regulations, including related to climate change
7. 19Our reputation, ability to do business, and results of operations may be impaired by legal compliance risks

Risks Related to our Debt and Other Financial Obligations

1. 20We have debt principal and interest payment requirements that may restrict our future operations and impair our ability to meet our obligations
2. 21Restrictions in our debt instruments limit our ability to take certain actions and breaches thereof could impair our liquidity
3. 22Our borrowing costs may be impacted by our credit ratings developed by various rating agencies
4. 23We have significant operating and finance lease obligations and our failure to meet those obligations could adversely affect our financial condition

Human Capital Risks

1. 24We depend on the services of key individuals and relationships, the loss of which could materially harm us
2. 25We may be subject to further unionization and work stoppages at our facilities or our customers may be subject to work stoppages, which could seriously impact the profitability of our business
3. 26Healthcare costs for active employees may exceed projections and may negatively affect our financial results