AP Ampco-Pittsburgh Dashboard

Risks

• Risks Related to Our Business and Industry
• Cyclical demand for products and economic downturns could reduce the demand for, and sales of, our products, which could adversely affect our margins and profitability.
• Excess global capacity in the steel industry could lower prices for our products, which could adversely affect our sales, margins and profitability, as well as collectability of receivables and salability of in-process inventory.
• A reduction in the level of export sales, as well as other economic factors in foreign countries, could have an adverse impact on our financial results.
• Fluctuation of the value of the U.S. dollar relative to other currencies could adversely affect our business, results of operations and financial condition.
• Commodity price increases, as well as any reductions in electricity, gas supply or shortage of key production materials, could adversely impact our production, which could result in lower profitability or higher losses.
• A work stoppage or another industrial action on the part of any of our unions could be disruptive to our operations.
• Dependence on certain equipment may cause an interruption in our production if such equipment is out of operation for an extended period of time, which could result in lower sales and profitability.
• The ultimate liability of our subsidiaries for claims alleging personal injury from exposure to asbestos-containing components historically used in certain products of our subsidiaries could have a material adverse effect on our financial condition or liquidity in the future.
• A change in the existing regulatory environment could negatively affect our operations and financial performance.
• New trade restrictions and regulatory burdens associated with “Brexit” could adversely impact our operations and financial performance.
• We may not be able to achieve expected benefits of restructuring our operations or consummating future divestitures of operations which become non-core to our portfolio.
• We could face limitations in availability of capital to fund our strategic plans, including plant and equipment modernization. Additionally, deterioration in our credit profile or increases in interest rates could increase our costs of borrowing and further limit our access to the capital markets and commercial credit.
• We have significant international operations and sales, and face risks related to global health epidemics such as the coronavirus.
• The COVID-19 pandemic has caused disruptions in manufacturing industries.
• Risks Related to Ownership of Our Securities
• Actions of activist shareholders with respect to us or our securities could be disruptive and potentially costly and the possibility that activist shareholders may contest, or seek changes that conflict with, our strategic direction could cause uncertainty about the strategic direction of our business.
• We may not continue to satisfy the continued listing requirements of the New York Stock Exchange and NYSE American for our common stock and Series A warrants, respectively.
• Holders of Series A warrants will have no rights as holders of common stock until they exercise their Series A warrants and acquire common stock.
• The market price of our common stock may not exceed the exercise price of the Series A warrants at such time as the holder desires to exercise such Series A warrants.
• We have not declared dividends since mid-2017 and do not expect to declare dividends in the future. Any return on the investment in our common stock may be limited to the value of our common stock.
• Because the Series A warrants are executory contracts, they may have no value in a bankruptcy or reorganization proceeding.
• Potential attacks on information technology infrastructure and other cyber-based business disruptions could have a material adverse effect on our financial condition and results of operations.
• If we fail to maintain an effective system of internal control, we may not be able to accurately determine our financial results or prevent fraud. As a result, our shareholders could lose confidence in our financial results, which could harm the business and the value of our securities.