EML Eastern Co

Risks

• The Company’s business is subject to risks associated with conducting business overseas.
• Our financial and operating performance may be adversely affected by epidemics and other health related issues.
• Indebtedness may affect our business and may restrict our operating flexibility.
• The phaseout of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate, may adversely affect interest rates.
• Increases in the price or reduced availability of raw materials could increase the cost of raw materials, decrease profit margins or impair the Company’s ability to meet production requirements on time or at all.
• The Company faces active global competition and if it does not compete effectively, its business may suffer.
• If tariffs on imported Chinese products are further expanded to include additional products and the tariff is reinstated to 25%, our cost of raw materials may increase, which could adversely affect our business, results of operations and financial condition.
• The inability to develop new products could limit growth.
• The inability to identify or complete acquisitions could limit growth.
• We may be unable to successfully execute or effectively integrate acquisitions, including the Big 3 Precision acquistion and any businesses we may acquire in the future.
• Changes in competition in the markets that the Company services could impact revenues and earnings.
• Environmental compliance costs and liabilities could increase the Company’s expenses and adversely affect the Company’s financial condition.
• Changes in climate may increase the frequency and intensity of adverse weather patterns and may negatively impact our business.
• 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.