Certain information included in the Automodular Corporation (referred to as “the Company”) website is forward-looking. In addition, the Company and its representatives periodically make written and oral statements which may pertain to the Company or the environment in which Automodular Corporation operates. By their nature, forward-looking statements are subject to assumptions and known and unknown risks and uncertainties, which could result in actual performance or conditions being materially different from anticipated results.
The forward-looking statements in the Automodular Corporation website reflect management’s expectations regarding Automodular Corporation’s results of operations, performance and future growth, business prospects and opportunities as at the date on which they were made. Wherever possible, words such as “proposed”, “contemplated”, “will”, “anticipate”, “believe”, “expect”, “intend”, “should” and similar expressions have been used to identify forward-looking statements. These forward-looking statements reflect management’s beliefs and are based on information available to management and assumptions which management believed were reasonable, all as at the date on which the forward-looking statements were made.
Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date to which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The following are some of the more significant risks that could impact the Company and its future results:
The automotive industry is cyclical and influenced by various economic and political factors, including interest rates, consumer demand and international conflicts.
On occasion, automotive suppliers are forced to undergo restructuring either through Chapter 11 in the United States or receivership in Canada. These situations may impact the Company in two ways. First, the Company may be exposed to credit risk for those contracts with the Tier 1 suppliers. Second, such filings create a level of unease in the lending community. This makes it more difficult for the Company to finance capital and pre-production costs of new contract awards.
Earnings may be adversely impacted by poor consumer demand for vehicles for which the Company provides services. This may result in unplanned downtime. We earn revenues primarily based on a variable piece price and many of our costs are fixed in nature.
The Company enters into long-term contracts with its customers. The contracts often contain price concessions over the contract term. The goal is to reduce or eliminate this erosion of profitability by cost reductions realized through continuous improvement programs.
As a result of the competitive automotive environment, pricing pressures have intensified. Customers continue to demand additional price reductions beyond existing contractual commitments that could have an adverse impact on the Company’s future earnings.