Materion (MTRN) Financial Report Summaries

Risks

• A portion of our revenue is derived from the sale of defense-related products through various contracts and subcontracts. These contracts may be suspended, canceled, or delayed, which could have an adverse impact on our revenues.
• The markets for our products are experiencing rapid changes in technology.
• The availability of competitive substitute materials for beryllium-containing products may reduce our customers’ demand for these products and reduce our sales.
• Our long and variable sales and development cycle makes it difficult for us to predict if and when a new product will be sold to customers.
• The availability and prices of some raw materials we use in our manufacturing operations fluctuate, and increases in raw material costs can adversely affect our operating results and our financial condition.
• Utilizing precious metals in the manufacturing process creates challenges in physical inventory valuations that may impact earnings.
• Because we maintain a significant inventory of precious metals, we may experience losses due to theft or employee error.
• Access to consigned metals may restrict our operations
• We have a limited number of manufacturing facilities, and damage to those facilities, or to critical pieces of equipment in these facilities, could interrupt our operations, increase our costs of doing business, and impair our ability to deliver our products on a timely basis.
• Data privacy compliance and breaches and the evolving global governmental regulations relating to data privacy and cybersecurity could adversely affect our results of operations and profitability.
• Our defined benefit pension plans and other post-employment benefit plans are subject to financial market risks that could adversely impact our financial performance.
• Unexpected events and natural disasters at our mine or manufacturing facilities could increase the cost of operating our business.
• Tax increases and changes in tax laws may adversely affect our financial results
• Our success is dependent upon our relationships with certain key customers.
• Our business may be impacted by external factors that we may not be able to control.
• We conduct our sales and distribution operations on a worldwide basis and are subject to the risks associated with doing business outside the United States.
• Changes in laws or regulations or the manner of their interpretation or enforcement could adversely impact our financial performance and restrict our ability to operate our business or execute our strategies.
• We may be exposed to certain regulatory and financial risks related to climate change.
• We are exposed to lawsuits in the normal course of business, which could harm our business.
• Health issues, litigation, and government regulations relating to our beryllium operations could significantly reduce demand for our products, limit our ability to operate, and adversely affect our profitability.
• Our bertrandite ore mining and manufacturing operations are subject to extensive environmental regulations that impose, and will continue to impose, significant costs and liabilities on us, and future regulation could increase these costs and liabilities or prevent production of beryllium-containing products.
• Expectations relating to environmental, social and governance considerations expose us to potential liabilities, increased costs and other adverse effects on our business.
• A major portion of our bank debt consists of variable-rate obligations, which subjects us to interest rate fluctuations.
• Our failure to comply with the covenants contained in the terms of our indebtedness could result in an event of default, which could materially and adversely affect our operating results and our financial condition. Additionally, restrictive covenants contained in our indebtedness may restrict our operations, including our ability to pursue our growth and acquisition strategies.
• Adverse business conditions could impact our ability to generate cash and service our indebtedness.
• We may not be able to complete our acquisition strategy or successfully integrate acquired businesses.
• Our products are deployed in complex applications and may have errors or defects that we find only after deployment.
• Our restructuring efforts may not have the intended effects.
• If we are unable to retain our qualified management and employees, our business may be negatively affected.