AP Ampco Pittsburgh Corp

Risks

• Cyclical demand for products and economic downturns may reduce the demand for, and sales of, our products, which could adversely affect our margins and profitability.
• Excess global capacity in steel industry could lower prices for our products, which would 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, may have an adverse impact on our financial results.
• Fluctuation of the value of the U.S. dollar relative to other currencies may 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 would result in lower profitability.
• We may not be able to realize the expected benefits from the acquisitions that we make, and we may experience difficulties in integrating the acquired businesses.
• A work stoppage or another industrial action on the part of any of our unions may 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 would 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.
• 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.
• 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 successfully to consummate proposed divestitures or restructure operations.
• We face limitations in availability of capital to fund our strategic plans.