EML Eastern Co

Risks

• The Company's business is subject to risks associated with conducting business overseas.
• Indebtedness may affect our business and may restrict our operating flexibility.
• Increases in the price or reduced availability of raw materials.
• If tariffs on imported Chinese products are further expanded to include an additional $267 billion of products and the tariff is increased to 25% from the current 10% our cost of raw materials may increase, which could adversely affect our business, results of operations and financial condition.
• Changes in competition in the markets that the Company services could impact revenues and earnings.
• The inability to develop new products could limit growth.
• The inability to identify or complete acquisitions could limit growth.
• Environmental compliance costs and liabilities could increase the Company's expenses and adversely affect the Company's financial condition.
• Our technology is important to the Company's success and the failure to protect this technology could put the Company at a competitive disadvantage.
• The Company relies on information and technology for many of its business operations, which could fail and cause disruption to the Company's business operations.
• A breach in the security of the Company's software could harm its reputation, result in a loss of current and potential customers and subject the Company to material claims, which could materially harm our operating results and financial condition.
• The Company could be subject to litigation, which could have a material impact on the Company's business, financial condition or results of operations.
• The Company could be subject to additional tax liabilities.
• The Company's goodwill or indefinite-lived intangible assets may become impaired, which could require a significant charge to earnings to be recognized.
• The Company may need additional capital in the future, which may not be available on acceptable terms, if at all.
• The Company's stock price may become highly volatile.
• The Company may not be able to reach acceptable terms for contracts negotiated with its labor unions and be subject to work stoppages or disruption of production.
• Deterioration in the creditworthiness of several major customers could have a material impact on the Company's business, financial condition or results of operations.
• The Company's operating results may fluctuate, which makes the results of operations difficult to predict and could cause the results to fall short of expectations.
• New or existing U.S. or foreign laws could subject the Company to claims or otherwise impact the Company's business, financial condition or results of operations.