Titan International(US:TWI)2025-02-26 22:53Ownership and Operations - The Company owns 64.3% of Voltyre-Prom, which represents approximately 5% and 7% of consolidated assets as of December 31, 2024, and 2023, respectively[103]. - The Russian operations account for approximately 5%, 6%, and 6% of consolidated global sales for the years ended December 31, 2024, 2023, and 2022, respectively[103]. - The military conflict between Russia and Ukraine has not significantly impacted the Company's global operations, but it continues to monitor potential effects[103]. Compliance and Regulatory Risks - The Company is subject to anti-corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act (FCPA), which could adversely affect its business and reputation[106]. - The Company has implemented training programs to ensure compliance with evolving sanctions and export controls[102]. - The Company is subject to risks associated with climate change regulations, which may increase costs and disrupt operations[108]. - International acquisitions may involve additional complexities and risks, including compliance with foreign laws and regulations[118]. Financial Risks and Economic Conditions - The Company may incur additional tax expense or tax exposure due to changes in income tax provisions and cash tax liabilities across various jurisdictions[115]. - The Company is affected by global and regional economic conditions, with demand for products being cyclical and potentially reduced during economic downturns[117]. - Economic conditions vary by region, with demand for products generally increasing in areas experiencing economic growth[117]. - The Company’s operating costs may be impacted by higher inflation and interest rates, affecting overall financial performance[117]. - The Company may experience financial risks associated with increased indebtedness, including reduced liquidity and higher cash flow requirements[119]. Competition and Market Risks - The Company faces intense competition and potential adverse effects from unfair trade practices, particularly related to imported off-the-road tires[97]. - The Company faces risks from natural disasters and sabotage, which could lead to uninsured losses and damage to operational capacity[118]. Investment and Acquisition Risks - Future acquisitions or divestitures may require significant resources and could result in substantial costs or liabilities, impacting managerial focus[118]. - Financing for future acquisitions may come from cash from operations, additional indebtedness, or issuing equity securities, which could impair business operations[119]. - The Company is not insured against all potential losses, which could adversely affect its financial condition and results of operations[118]. - The Company’s business activities involve substantial investments in manufacturing facilities, which are vulnerable to various risks[118].