RPM International (RPM)

Risks

• The Covid pandemic has disrupted our operations, has had and continues to have an adverse effect on our business, and could adversely affect our business in the future.
• Volatility in the equity markets or interest rates could substantially increase our pension costs and required pension contributions.
• Terrorist activities and other acts of violence or war, pandemics, natural disasters and other disruptions have negatively impacted in the past and could negatively impact in the future the United States and foreign countries, the financial markets, the industries in which we compete, our operations and profitability.
• Adverse weather conditions may reduce the demand for some of our products and could have a negative effect on our sales.
• Significant foreign currency exchange rate fluctuations may harm our financial results.
• The use of accounting estimates involves judgment and could impact our financial results.
• The results of our annual testing and as-required interim testing of goodwill and other intangible assets have required, and in the future may require that we record impairment charges.
• Ongoing operating improvement initiatives could cause us to incur significant expenses and impact the trading value of our common stock.
• Fluctuations in the supply and prices of raw materials may negatively impact our financial results.
• Our success depends upon our ability to attract and retain key employees and the succession of senior management.
• We depend on a number of large customers for a significant portion of our net sales and, therefore, significant declines in the level of purchases by any of these key customers could harm our business.
• If our efforts in acquiring and integrating other companies or product lines or establishing joint ventures fail, our business may not grow.
• We derive a significant amount of our revenues from foreign markets, which subjects us to additional business risks that could adversely affect our results of operations.
• Our business and financial condition could be adversely affected if we are unable to protect our material trademarks and other proprietary information or there is a loss in the actual or perceived value of our brands.
• Although we have insurance, it may not cover every potential risk associated with our operations.
• The coatings, chemical and construction products industries in which we operate expose us to inherent risks of legal and warranty claims and other litigation-related costs, which could adversely impact our business.
• Compliance with environmental, health and safety laws and regulations could subject us to unforeseen future expenditures or liabilities, which could have a material adverse effect on our business.
• Our businesses are subject to varying domestic and foreign laws and regulations that may restrict or adversely impact our ability to conduct our business.
• We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws of other countries, as well as trade sanctions administered by the office of Foreign Assets Control and the Department of Commerce.
• Our operations are subject to the effect of global tax law changes, some of which have been, and may be in the future, retroactive in application.
• We could be adversely affected by failure to comply with federal, state and local government procurement regulations and requirements.