Profitability Risks

However, several risks were noted. SG&A costs have risen partly because of negative currency‑translation effects and higher personnel expenses. Raw‑material volatility has exposed the firm to a full‑year headwind estimated at $90 million, with a particular concern about supply‑chain constraints and price increases linked to geopolitical tensions in the Persian Gulf. Tariff exposure and pricing pressure from major automakers in the US and Europe could also erode profitability if global trade friction escalates.