−Removed: There have been no material changes to the Risk Factors previously disclosed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, except for the addition of the following risk factors.
+Added: There have been no material changes to the Risk Factors previously disclosed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, except for the addition of the following risk factors.
Changes to United States tariffs, import and export regulations and potential countermeasures could increase our costs and disrupt our global supply chain, which could negatively impact our business, results of operations and cash flows.
7 unchanged sentences
We have estimated the effect of the increased tariffs, as they currently stand, could have a $4 million to $8 million impact on our pre-tax profit during 2025 if we are unable to mitigate them, which we intend to do.
+Added: Mitigation efforts include changing the origin of sourcing materials, sharing of incremental tariff costs with vendors and customer price increases where contractually possible.
These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade between the impacted countries and the United States.
4 unchanged sentences
In order to mitigate variations in operating results due to the commodity price fluctuations, we hedge the majority of our exposure to scrap copper and copper-containing raw materials used in our production processes.
−Removed: The results of this hedging practice could be positive, neutral or negative in any period depending on price changes in the hedged
−Removed: exposures and the correlation of the price changes in the financial instruments we use to hedge.
+Added: The results of this hedging practice could be positive, neutral or negative in any period depending on price changes in the hedged exposures and the correlation of the price changes in the financial instruments we use to hedge.
Our hedging instruments primarily utilize the London Metal Exchange (LME) index while the majority of our purchases are priced off of the Commodity Exchange, Inc.
1 unchanged sentence
Historically, price changes in the LME and the COMEX have been highly correlated and our hedges have been effective in mitigating our financial exposure to changes in the price of copper.
−Removed: In 2025, the U.S Department of Commerce initiated a Section 232 investigation to determine the effects on national security of imports of copper in all forms.
−Removed: As a result of potential and anticipated tariffs being levied on the importation of copper at the conclusion of the investigation, COMEX prices are trading at a five to 20 percent premium compared to LME prices as of March 31, 2025.
−Removed: As a result, our hedging instruments are less effective in offsetting increases in raw material prices when such a premium exists.
+Added: In July 2025, the U.S.
+Added: government imposed 50 percent tariffs on imports of semi-finished copper products and copper-intensive derivative products, effective August 1, 2025.
+Added: Actual or anticipated U.S., tariffs have caused and can continue to cause significant premiums to the COMEX prices as compared to LME price.
+Added: Such premiums can result in our hedging instruments being less effective in offsetting increases in raw material prices.
Sustained and prolonged premiums of COMEX pricing over LME pricing could have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.
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.