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Financial report summary
?Risks
- Risks Related to Our Company and Financial Position
- We operate in a highly competitive environment, which could adversely affect our sales and pricing if we fail to compete effectively in the future.
- Economic weakness in the industrial manufacturing sector could adversely affect our financial results.
- Global pandemics could have in the future a material adverse effect on our business and results of operations.
- Adverse global economic conditions and world events could affect our operating results, industry and business.
- Supply chain disruptions could interrupt product manufacturing and global logistics and increase product costs.
- Sustained increases in funding obligations under the pension plans may impair our liquidity or financial condition.
- Our operational results are dependent on how well we can scale our manufacturing capacity and resources to the level of our customers’ demand.
- Changes in government monetary or fiscal policies or inflation and increasing interest rates may negatively impact our results.
- If we do not meet customers’ product quality, reliability standards and expectations, we may experience increased or unexpected product warranty claims and other adverse consequences to our business.
- If our manufacturing processes and products do not comply with applicable statutory and regulatory requirements, or if we manufacture products containing design or manufacturing defects, demand for our products may decline and we may be subject to product liability claims.
- Volatility in the price of energy and raw materials, large or rapid increases in the cost of raw materials or components parts, substantial decreases in their availability, or our dependence on particular suppliers of raw materials and component parts could materially and adversely affect our operating results.
- We may not be able to maintain our engineering, technological and manufacturing expertise.
- International operations and our financial results in those markets may be affected by legal, regulatory, political, currency exchange and other economic risks.
- Failure to comply with laws, rules and regulations could negatively affect our business operations and financial performance.
- Our tax rate is dependent upon a number of factors, a change in any of which could impact our future tax rates and net income.
Management Discussion
- In "Management's discussion and analysis on financial condition and results of operations" in this Quarterly Report on Form 10-Q, we discuss non-GAAP financial measures including currency-neutral sales, and adjusted operating income.
- We present these non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by eliminating items that we do not believe are indicative of our core operating performance. Such non- GAAP financial measures assist investors in understanding the ongoing operating performance of the Company by presenting financial results between periods on a more comparable basis. Such measures should be considered in addition to, and not in lieu of, the financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Currency-neutral sales are calculated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlying business trends excluding the impact of translation arising from foreign currency exchange rate fluctuations. Adjusted operating income adjusts for restructuring costs that are reflected in one period but not the other in order to show comparative operational performance. We include a reconciliation of currency-neutral sales and adjusted operating income to its comparable GAAP financial measures.
- References to currency-neutral sales and adjusted operating income should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with GAAP and may not be comparable to similarly titled non- GAAP financial measures used by other companies. In evaluating these non-GAAP financial measures, investors should be aware that in the future we may incur expenses or be involved in transactions that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.