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Risks
1. Economic Recession Risk: It is possible that the economic conditions worsen, which can lead to a decrease in demand for the company’s products. This could lead to a decrease in sales, a decrease in profits, and a decrease in share prices.
2. Increase in Costs and Input Prices: Demand and input prices are volatile and can increase during times of high demand. This can put pressure on operating margins and profits.
3. Competition: The chemical industry is highly competitive, and Kronos Worldwide, Inc. could face competition from new and established companies that produce similar products at lower costs.
4. Regulatory and Legislative Risk: Changes in environmental, safety, and health regulations and legislative initiatives can lead to increased costs for the company.
5. Dependence on Major Customers: A decrease in demand from major customers could adversely affect the company’s financial performance.