Tecumseh Products 2014 Annual Report Download - page 20

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Cautionary Statements Relating To Forward-Looking Statements
The following information should be read in connection with the information contained in the Consolidated Financial
Statements and Notes to Consolidated Financial Statements in Item 8 of this report.
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are
subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the
future by or on behalf of us. Forward-looking statements can be identified by the use of terms such as “expects,” “should,”
“may,” “believes,” “anticipates,” “will,” and other future tense and forward-looking terminology, or by the fact that they appear
under the caption “Outlook.” Our forward-looking statements generally relate to our future performance, including our
anticipated operating results and liquidity sources and requirements, our business strategies and goals, and the effect of laws,
rules, regulations, new accounting pronouncements and outstanding litigation, on our business, operating results, and financial
condition.
Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties,
including, but not limited to, i) our history of losses and our ability to maintain adequate liquidity in total and within each
foreign operation; ii) our ability to develop successful new products in a timely manner; iii) current and future global or
regional political and economic conditions, including housing starts, and the condition of credit markets, which may magnify
other risk factors; iv) the success of our effort to effectively improve productivity and restructure our operations in order to
reduce costs and bring them in line with projected production levels and product mix; v) the extent of any business disruption
that may result from the restructuring and realignment of our manufacturing operations and personnel or system
implementations, the ultimate cost of those initiatives and the amount of savings actually realized; vi) loss of, or substantial
decline in; sales to any of our key customers; vii) increased or unexpected product warranty claims; viii) actions of competitors
in markets with intense competition; ix) financial market changes, including fluctuations in foreign currency exchange rates
and interest rates; x) the ultimate cost of defending and resolving legal and environmental matters, including any liabilities
resulting from the regulatory antitrust investigations commenced by the United States Department of Justice Antitrust Division
and the Secretariat of Economic Law of the Ministry of Justice of Brazil, both of which could preclude commercialization of
products or adversely affect profitability and/or civil litigation related to such investigations; xi) local governmental,
environmental, trade and energy regulations; xii) availability and volatility in the cost of materials, particularly commodities,
including steel, copper and aluminum, whose cost can be subject to significant variation; xiii) significant supply interruptions
or cost increases; xiv) loss of key employees; xv) the extent of any business disruption caused by work stoppages initiated by
organized labor unions and other labor matters; xvi) risks relating to our information technology systems or failures of third-
party technology service providers; xvii) impact of future changes in accounting rules and requirements on our financial
statements; xviii) default on covenants of financing arrangements and the availability and terms of future financing
arrangements; xix) reduction or elimination of credit insurance; xx) potential political and economic adversities that could
adversely affect anticipated sales and production; xxi) in India, potential military conflict with neighboring countries that could
adversely affect anticipated sales and production; xxii) weather conditions affecting demand for replacement products; and
xxiii) the effect of terrorist activity and armed conflict. These forward-looking statements are made only as of the date of this
report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
For more information regarding these and other uncertainties and factors that could cause our actual results to differ materially
from what we have anticipated in our forward-looking statements or otherwise could materially adversely affect our business,
financial condition, or operating results, see “Risk Factors” in Item 1A of this report.
EXECUTIVE SUMMARY
In addition to the relative competitiveness of our products, our business is significantly influenced by several specific economic
factors: the strength of the overall global economy, which can have a significant impact on our sales; our product costs,
especially the price of copper, steel and aluminum; and the relative value compared to the U.S. Dollar of those foreign
currencies of countries where we operate.
Furthermore, we monitor changes in local governmental regulations with regards to allowable refrigerants we can use in our
compressors and condensing units. These changes can also have a significant impact on our sales and our product costs.