Cooper Tire & Rubber (CTB)

Risks

• Impact of the ongoing COVID-19 pandemic, or similar public health crises, on the Company's operations, distribution channels, customers and suppliers.
• Pricing volatility for raw materials or commodities or an inadequate supply of key raw materials could result in increased costs and may significantly affect the Company’s profitability.
• Any interruption in the Company’s skilled workforce, or that of its suppliers or customers, including labor disruptions, could impair its operations and harm its earnings and results of operations.
• If the Company is unable to attract and retain key personnel, its business could be materially adversely affected.
• The Company’s industry is highly competitive, and the Company may not be able to compete effectively with lower-cost producers and larger competitors.
• The Company has and could in the future incur restructuring charges and other costs as it continues to execute actions in an effort to improve future profitability and competitiveness and may not achieve the anticipated savings and benefits from these actions.
• If the price of energy sources increases, the Company’s operating expenses could increase significantly or the demand for the Company’s products could be affected.
• If assumptions used in developing the Company’s strategic plan are inaccurate or the Company is unable to execute its strategic plan effectively, its profitability and financial position could be negatively impacted.
• The Company may not be successful in executing and integrating investments and acquisitions into its operations, which could harm its results of operations and financial condition.
• There are risks associated with the Company’s global strategy, which includes using joint ventures and partially-owned subsidiaries.
• The Company’s expenditures for pension and other postretirement obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect.
• The realizability of deferred tax assets may affect the Company’s profitability and cash flows.
• A disruption in, or failure of, the Company’s information technology systems, including those related to cybersecurity, could adversely affect the Company’s business operations and financial performance.
• If the Company fails to develop technologies, processes or products needed to keep up with rapidly evolving distribution channels and to support consumer and customer demand or, changes in consumer or customer behavior, it may lose significant market share or be unable to recover associated costs.
• The Company may fail to successfully develop or implement information technologies or related systems, resulting in a significant competitive disadvantage.
• The Company may not be able to protect its intellectual property rights adequately.
• The Company’s results could be impacted by changes in tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments on imported tires, raw materials or equipment used in tire manufacturing.
• The Company may be adversely affected by legal actions, including product liability claims which, if successful, could have a negative impact on its financial position, cash flows and results of operations.
• Compliance with legal and regulatory initiatives could increase the cost of operating the Company’s business.
• Compliance with and changes in tax laws could materially and adversely impact our financial condition, results of operations and cash flows.
• The impact of proposed new accounting standards may have a negative impact on the Company’s financial statements.
• The Company is facing risks relating to healthcare legislation.
• Environmental issues, including climate change, or legal, regulatory or market measures to address environmental issues, may negatively affect the Company's business and operations and cause it to incur significant costs.
• The Company is facing heightened risks due to the uncertain business environment.
• The Company conducts its manufacturing, sales and distribution operations on a worldwide basis and is subject to risks associated with doing business outside the U.S.
• The results of the United Kingdom’s referendum on withdrawal from the European Union may have a negative effect on global economic conditions, financial markets or the Company’s business.
• The Company has a risk due to volatility of the capital and financial markets.
• LIBOR reform, increases in interest rates or changes in credit ratings may negatively impact the Company.
• A failure in the Company's internal financial controls could adversely affect the Company's business operations and financial performance.
• The Company has been and may continue to be impacted by currency fluctuations, which may reduce reported results for the Company’s international operations and otherwise adversely affect the business.