GGG Graco, Inc.

Risks

• Growth Strategies and Acquisitions - Our growth strategies may not provide the return on investment desired if we are not successful in implementation of these strategies.
• Currency - Changes in currency translation rates could adversely impact our revenue, earnings and the valuation of assets denominated in foreign currencies.
• Economic Environment - Demand for our products depends on the level of commercial and industrial activity worldwide.
• Competition - Our success depends upon our ability to develop, market and sell new products that meet our customers’ needs, and anticipate industry changes.
• Global Sourcing - Risks associated with foreign sourcing, supply interruption, delays in raw material or component delivery, supply shortages and counterfeit components may adversely affect our production or profitability.
• Information Systems - Interruption of or intrusion into information systems may impact our business.
• Intellectual Property - Demand for our products may be affected by new entrants who copy our products or infringe on our intellectual property. Competitors may allege that our products infringe the intellectual property of others.
• Foreign Operations - Conducting business internationally exposes our Company to risks that could harm our business.
• Catastrophic Events - Our operations are at risk of damage, destruction or disruption by natural disasters and other unexpected events.
• Changes in Laws and Regulations - Changes may impact how we can do business and the cost of doing business around the world.
• Anti-Corruption and Trade Laws - We may incur costs and suffer damages if our employees, agents, distributors or suppliers violate anti-bribery, anti-corruption or trade laws and regulations.
• Tax Rates and New Tax Legislation - Changes in tax rates or the adoption of new tax legislation may affect our results of operations, cash flows and financial condition.
• Impairment - If acquired businesses do not meet performance expectations, assets acquired could be subject to impairment.
• Political Instability - Uncertainty surrounding political leadership may limit our growth opportunities.
• Legal Proceedings - Costs associated with claims, litigation, administrative proceedings and regulatory reviews, and potentially adverse outcomes, may affect our profitability.
• Personnel - Our success may be affected if we are not able to attract, develop and retain qualified personnel.
• Major Customers - Our Contractor segment depends on a few large customers for a significant portion of its sales. Significant declines in the level of purchases by these customers could reduce our sales and impact segment profitability.
• Variable Industries - Our success may be affected by variations in the construction, automotive, mining and oil and natural gas industries.