Rockwell Automation (ROK)

Risks

• We face the potential harms of natural disasters, including those as a result of climate change, pandemics, including the COVID-19 pandemic, acts of war, terrorism, international conflicts or other disruptions to our operations, the duration and severity of which are highly uncertain and difficult to predict.
• Adverse changes in macroeconomic or industry conditions may result in decreases in our sales and profitability.
• Volatility and disruption of the capital and credit markets may result in increased costs to maintain our capital structure.
• Our industry is highly competitive.
• We rely on suppliers to provide equipment, components and services.
• Our business success depends on attracting, developing, and retaining highly qualified personnel.
• We sell to customers around the world and are subject to the risks of doing business in many countries.
• Failures or security breaches of our products, connected services, manufacturing environment, supply chain, or information technology systems could have an adverse effect on our business.
• An inability to respond to changes in customer preferences could result in decreased demand for our products.
• There are inherent risks in our solutions and services businesses.
• We rely on our distribution channel for a substantial portion of our sales.
• Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers.
• Increasing employee benefit costs and funding requirements could have a negative effect on our operating results and financial condition.
• Failure to identify, manage, complete, and integrate strategic transactions may adversely affect our business or we may not achieve the expected benefits of these transactions.
• We own common stock in PTC Inc. and are exposed to the volatility, liquidity and other risks inherent in holding that stock.
• New legislative and regulatory actions could adversely affect our business.
• Claims from taxing authorities could have an adverse effect on our income tax expense and financial condition.
• Potential liabilities and costs from litigation (including asbestos claims and environmental remediation) could reduce our profitability.