Wesco International (WCC)

Risks

• Our global operations expose us to political, economic, legal, currency and other risks.
• Adverse conditions in the global economy and disruptions of financial and commodities markets could negatively impact us and our customers.
• Our business and operations have been and will continue to be adversely affected by the COVID-19 pandemic, and the duration and extent to which it will affect our business, financial condition, results of operations, cash flows, liquidity, and stock price remains uncertain.
• We are subject to various laws and regulations globally and any failure to comply could adversely affect our business.
• Fluctuations in foreign currency have an effect on our results from operations.
• We may not be able to fully realize the anticipated benefits and cost savings of our merger with Anixter.
• Expansion into new business activities, industries, product lines or geographic areas could subject the company to increased costs and risks and may not achieve the intended results.
• Our strategic and operational initiatives are subject to various risks and uncertainties, and we may be unable to implement the initiatives successfully.
• Any future acquisitions that we may undertake will involve a number of inherent risks, any of which could cause us not to realize the anticipated benefits.
• We may experience a failure in or breach of our information security systems, or those of our third-party product suppliers or service providers, as a result of cyber-attacks or information security breaches.
• Loss of key suppliers could decrease sales, profit margins and earnings.
• We have been and may continue to be adversely affected by supply chain challenges, including product shortages, delays and price increases, which could decrease sales, profit margins and earnings.
• Product cost fluctuations could decrease sales, profit margins and earnings.
• A decline in project volume could adversely affect our sales and earnings.
• We have risks associated with the sale of nonconforming products and services.
• Disruptions to our logistics capability may have an adverse impact on our operations.
• An increase in competition could decrease sales, profit margins, and earnings.
• Changes in tax laws or challenges to the Company's tax positions by taxing authorities could adversely impact the Company's results of operations and financial condition.
• Our outstanding indebtedness requires debt service commitments that could adversely affect our ability to fulfill our obligations and could limit our growth and impose restrictions on our business, and fluctuations in interest rates could affect the cost of our indebtedness.
• Our debt agreements contain restrictive covenants that may limit our ability to operate our business.
• We are subject to costs and risks associated with global laws and regulations affecting our business, as well as litigation for product liability or other matters affecting our business.
• We must attract, retain and motivate our employees, and the failure to do so may adversely affect our business.
• There is a risk that the market value of our common stock may decline.