Oil-Dri Corp. Of America (ODC)

Risks

• Our future growth and financial performance depend in large part on successful new product introductions.
• We face intense competition in our markets.
• Our periodic results may be volatile.
• Acquisitions involve a number of risks, any of which could cause us not to realize the anticipated benefits.
• We depend on a limited number of customers for a large portion of our net sales.
• Price or trade concessions, or the failure to make them to retain customers, could adversely affect our sales and profitability.
• Increases in energy, commodity and transportation costs would increase our operating costs, and we may be unable to pass all these increases on to our customers in the form of higher prices and surcharges.
• Our business could be negatively affected by supply, capacity, labor, information technology and logistics disruptions or the costs incurred to avoid these disruptions.
• Changes in inventory strategy by our customers as well as other external factors could adversely affect our sales and increase our inventory risk.
• Environmental, health and safety matters create potential compliance and other liability risks.
• Government regulation imposes significant costs on us, and future regulatory changes (or related customer responses to regulatory changes) could increase those costs or limit our ability to produce and sell our products.
• We face risks to our domestic and international sales and business operations due to economic, political, regulatory and other conditions.
• We may incur adverse safety events or product liability claims that may be costly, create adverse publicity and may add further governmental regulation.
• We may be subjected to increased taxes or fluctuating tax rates, which could adversely affect our results of operations and/or cash flows.
• We are a “controlled company” within the meaning of the New York Stock Exchange (“NYSE”) rules and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements.
• The market price for our Common Stock may be volatile.
• Future sales of our Common Stock could depress its market price.
• Future dividends on our common stock may be restricted or eliminated.