Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
|
Financial report summary
?Risks
- As a global business, we are exposed to local business risks in different countries, which could have a material adverse effect on our financial condition, results of operations and cash flows.
- Our operations and financial results have been and may continue to be adversely affected by general economic conditions.
- Unfavorable global economic conditions could adversely affect our business, financial condition, and results of operations.
- Exchange rate fluctuations could adversely affect our financial condition, results of operations and cash flows.
- Our international operations require us to comply with anti-corruption laws, economic sanctions, export controls and similar laws and regulations of the U.S. government and various international jurisdictions in which we do business.
- Alternative technology or other changes in our customers’ products may reduce or eliminate the need for certain of our products.
- Our new product development and research and development efforts may not succeed and our competitors may develop more effective or successful products.
- If we are unable to pass on increases in raw material prices, including natural gas, to our customers or to retain or replace our key suppliers, our results of operations and cash flows may be negatively affected.
- We face substantial competition in the industries in which we operate.
- We are subject to the risk of loss resulting from non-payment or non-performance by our customers.
- We rely on a limited number of customers for a meaningful portion of our business. A loss of one or more of these customers could adversely impact our profitability.
- Multi-year customer contracts in our Ecoservices segment are subject to potential early termination and such contracts may not be renewed at the end of their respective terms.
- Our quarterly results of operations are subject to fluctuations because the demand for some of our products is seasonal.
- Our growth projects may result in significant expenditures before generating revenues, if any, which may materially and adversely affect our ability to implement our business strategy.
- We may be liable for damages based on product liability claims brought against us or our customers for costs associated with recalls of our or our customers’ products.
- We are required to comply with a wide variety of laws and regulations, and are subject to regulation by various federal, state and foreign agencies, and our failure to comply with existing and future regulatory requirements could adversely affect our financial condition, results of operations and cash flows.
- We are subject to extensive environmental, health and safety regulations and face various risks associated with potential non-compliance or releases of hazardous materials.
- Existing and proposed regulations to address climate change by limiting greenhouse gas emissions may cause us to incur significant additional operating and capital expenses and may impact our business and results of operations.
- Sustainability initiatives may result in operational changes and expenditures, reduced demand for our products and adversely affect our business.
- Production and distribution of our products could be disrupted for a variety of reasons, and such disruptions could expose us to significant losses or liabilities.
- The insurance that we maintain may not fully cover all potential exposures.
- We could be subject to damages based on claims brought against us by our customers or lose customers as a result of the failure of our products to meet certain quality specifications.
- We may engage in strategic acquisitions or dispositions of certain assets or businesses that could affect our business, results of operations, financial condition and liquidity.
- Our joint ventures may not operate according to their business plans if our partners fail to fulfill their obligations or differences in views among our partners results in delayed decisions or failures to agree on major issues, which may adversely affect our results of operations and force us to dedicate additional resources to these joint ventures.
- Our failure to protect our intellectual property rights could adversely affect our future performance and growth.
- Our products may infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.
- Disruption, failure or cybersecurity breaches affecting or targeting computers and infrastructure used by us or our business partners may adversely impact our business and operations.
- Because our operations are conducted through our subsidiaries and joint ventures, we are dependent on the receipt of distributions and dividends or other payments from our subsidiaries and joint ventures for cash to fund our operations and expenses, including to make future dividend payments, if any.
- We may need to recognize impairment charges related to goodwill, identified intangible assets and fixed assets.
- We may be subject to future changes in tax legislation or exposure to additional tax liabilities that may adversely affect our results of operations.
- We have underfunded pension plan liabilities. We will require current and future operating cash flow to fund these shortfalls. We have no assurance that we will generate sufficient cash flow to satisfy these obligations.
- Our substantial level of indebtedness could adversely affect our financial condition.
- The terms of our indebtedness restrict our current and future operations, particularly our ability to respond to change or to take certain actions.
- Our stock price could be extremely volatile and, as a result, you may not be able to resell your shares at or above the price you paid for them.
- Your percentage ownership in us may be diluted by future issuances of capital stock, which could reduce your influence over matters on which stockholders vote.
- Provisions in our charter documents and Delaware law may deter takeover efforts that may be beneficial to stockholder value.
- Our certificate of incorporation designates courts in the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
- We may not pay additional dividends on our common stock and, consequentially, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.
- Significant trade developments stemming from the U.S. administration, U.S. courts’ or the United Kingdom’s exit from the European Union could have an adverse effect on us.
- If we lose certain key personnel or are unable to hire additional qualified personnel, we may not be able to execute our business strategy and our business could be adversely affected.
- We depend on good relations with our workforce, and any significant disruptions could adversely affect our operations.
- We are subject to certain risks related to litigation filed by or against us, as well as administrative and regulatory proceedings, and adverse results may harm our business.
- If we fail to maintain effective internal control over financial reporting and effective disclosure controls and procedures, we may not be able to accurately report our financial results in a timely manner or prevent fraud, which may adversely affect investor confidence in our company.
- Regulations related to conflict minerals could adversely impact our business.
Management Discussion
- Sales decreased $129.1 million to $691.1 million. The decrease in sales was primarily due to lower sales volume and the pass-through of lower sulfur costs, offset by higher average selling prices, after adjusting for impact of the pass-through of lower sulfur costs.
- Gross profit decreased $26.8 million to $197.9 million. The decrease in gross profit was primarily due to lower sales volume.
- Operating income decreased $7.7 million to $96.7 million. The decrease in operating income was primarily due to the decrease in gross profit, offset by lower selling, general and administrative expenses and other operating expenses.