QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: The Company is not significantly exposed to the impact of interest rate changes.
+Added: The Company is not significantly exposed to the direct impact of interest rate changes or foreign currency fluctuations.
+Added: Nevertheless, one of the Company’s major competitors is located in Japan.
+Added: The relative strength of the US dollar versus the Japanese yen can have a negative impact on the Company’s ability to raise prices when necessary to offset increasing costs.
The Company has not used derivative financial instruments.
−Removed: As one of our major competitors is located in Japan, currency fluctuations can have an impact on how we price our product in order to remain competitive.
−Removed: Although CPS has not been directly impacted by the war in Ukraine or by the conflict in Israel and Gaza, potential supply chain disruptions and its impact on energy costs are areas where we could be impacted in the future.
−Removed: Inflation is an area where we have seen some impact on our business.
−Removed: We have seen price increases in commodity raw materials, as well as increases in other costs of doing business.
+Added: Although CPS has not been directly impacted by the war in Ukraine, potential supply chain disruptions and its impact on energy costs are areas where we could be impacted in the future.
+Added: Inflation and the impact of tariffs on our costs is an area where we have seen some affect on our business.
+Added: We have seen price increases in commodity raw materials, such as aluminum, as well as increases in other costs of doing business.
As we receive new orders we have been able to pass on most of these costs to our customers.
−Removed: In the case of longer term pricing agreements, we have been able to pass on some of these costs through surcharges and in other ways to mitigate the impact on our profit.
−Removed: As inflation continues, our ability to continue to absorb higher costs by raising customer prices cannot be guaranteed.
−Removed: As of the date of this document, we are not aware of any material negative impacts that tariffs have on our business.
−Removed: Nevertheless, this issue is currently in flux.
−Removed: We could be negatively impacted in the sourcing of raw materials, or, reciprocal tariffs on CPS product could make it more difficult for us to sell profitably to foreign customers.
+Added: Fortunately, raw materials make up a smaller portion of our overall costs.
+Added: While they provide a headwind to our profitability, they are a relatively small factor in that total equation.
+Added: As inflation continues or new tariffs are put in place, our ability to continue to absorb higher costs by raising customer prices cannot be guaranteed.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.