HSC Harsco Corp.

Risks

• Negative economic conditions may adversely impact demand for the Company's products and services, as well as the ability of the Company's customers to meet their obligations to the Company on a timely basis.
• Cyclical industry and economic conditions may adversely affect the Company's businesses.
• The seasonality of the Company's business may cause quarterly results to fluctuate.
• Customer concentration and related credit and commercial risks may adversely impact the Company's results of operations, financial condition and cash flows.
• Disputes with customers with long-term contracts could adversely affect the Company’s financial condition.
• The Company's global presence subjects it to a variety of risks arising from doing business internationally.
• Due to the international nature of the Company's business, the Company could be adversely affected by violations of certain laws.
• Exchange rate fluctuations may adversely impact the Company's business.
• Economic conditions and regulatory changes following the U.K.’s referendum on withdrawal from the EU could impact the Company's business and results of operations.
• The Company may lose customers or be required to reduce prices as a result of competition.
• Restrictions imposed by the Company's Senior Secured Credit Facilities and other financing arrangements may limit the Company's operating and financial flexibility.
• The Company is exposed to counterparty risk in its derivative financial arrangements.
• The Company’s variable rate indebtedness subjects it to interest rate risk, which could cause the Company's debt service obligations to increase significantly.
• The Company is subject to taxes in numerous jurisdictions and could be subject to additional tax liabilities, which could materially adversely affect the Company’s results of operations and cash flows and impact the Company’s ability to compete abroad.
• The Company's defined benefit net periodic pension cost ("NPPC") is directly affected by equity and bond markets. A downward trend in those markets could adversely impact the Company's results of operations, financial condition and cash flows.
• If the Harsco Clean Earth Segment is unable to obtain or renew its operating permits or license agreements with regulatory bodies, its business would be adversely affected.
• A negative outcome on personal injury claims against the Company may adversely impact results of operations and financial condition.
• The nature of the Company’s products creates the possibility of significant product liability and warranty claims, which could harm its business.
• Higher than expected claims under insurance policies, under which the Company retains a portion of the risk, could adversely impact results of operations and cash flows.
• The Harsco Clean Earth Segment's insurance policies do not cover all losses, costs, or liabilities that it may experience.
• The waste management industry, in which the Harsco Clean Earth Segment is a participant, is subject to various economic, business, and regulatory risks.
• Increases or decreases in purchase prices (or selling prices) or availability of steel or other materials and commodities may affect the Company's profitability.
• The success of the Company's strategic ventures depends on the satisfactory performance by strategic venture partners of their strategic venture obligations.
• If the Harsco Clean Earth Segment fails to comply with applicable environmental laws and regulations, its business could be adversely affected.
• If the Harsco Clean Earth Segment fails to maintain safe worksites, it may be subject to significant operating risks and hazards.
• The Company is subject to various environmental laws, and the success of existing or future environmental claims against it could adversely impact the Company's results of operations and cash flows.
• The Company’s ongoing operations are subject to extensive laws, regulations, rules and ordinances relating to safety, health and environmental matters that impose significant costs and liabilities on the Company, and future laws and governmental standards could increase these costs and liabilities.
• The Company maintains a workforce based upon current and anticipated workload. If the Company does not receive future contract awards or if these awards are delayed, significant cost may result that could have a material adverse effect on results of operations, financial condition, liquidity and cash flows.
• The Company's intellectual property portfolio may not prevent competitors from independently developing similar or duplicative products and services.
• Union disputes or other labor matters could adversely affect the Company's operations and financial results.