Information regarding forward-looking statements This Interim Report on Form 10-Q contains certain statements, statistics and projections that are, or may be, forward-looking. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results of operations, financial condition, liquidity, performance, prospects, opportunities, achievements or industry results, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. The accuracy and completeness of all such statements, including, without limitation, statements regarding our future financial position, strategy, plans and objectives for the management of future operations, is not warranted or guaranteed. These statements typically contain words such as "believes," "intends," "expects," "anticipates," "estimates," "may," "will," "should" and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, factors identified in "Business," "Risk factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," or elsewhere in this Interim Report, as well as: â¢general economic conditions, or conditions affecting demand for the services offered by us in the markets in which we operate, both domestically and internationally, being less favorable than expected; â¢worldwide economic and business conditions and conditions in the industries in which we operate; â¢ongoing impact of COVID-19 and future pandemics; â¢fluctuations in the cost of raw materials and utilities; â¢availability of essential inputs, including but not limited to, raw materials, transport, energy and labor; â¢currency fluctuations and other financial risks; â¢our ability to protect our intellectual property; â¢the amount of indebtedness we have incurred and may incur, and the obligations to service such indebtedness and to comply with the covenants contained therein; â¢relationships with our customers and suppliers; â¢increased competition from other companies in the industries in which we operate; â¢changing technology; â¢our ability to execute and integrate new acquisitions; â¢claims for personal injury, death or property damage arising from the use of products produced by us; â¢the occurrence of accidents or other interruptions to our production processes; â¢changes in our business strategy or development plans, and our expected level of capital expenditure; â¢our ability to attract and retain qualified personnel; â¢restrictions on the ability of
Luxfer Holdings PLCto receive dividends or loans from certain of its subsidiaries; â¢regulatory, environmental, legislative and judicial developments; and â¢our intention to pay dividends. Please read the sections "Business" and "Risk factors" included within the 2020 Annual Report on Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk factors" of this Interim Report on Form 10-Q for a more complete discussion of the factors that could affect our performance and the industries in which we operate, as well as those discussed in other documents we file or furnish with the SEC. 22
About Luxfer Luxfer is a global manufacturer of high-tech industrial materials, focused on creating value using its wide range of technical know-how and proprietary technologies.
The global COVID-19 outbreak, characterized by heightened business uncertainty and widespread market weakness, negatively impacted our financial results in 2020, affecting demand in most of our end markets. We took various steps in 2020 to help mitigate the financial impact, including implementing additional cost savings measures, reducing our capital spending, initiating restructuring measures and proactively managing our fund. rolling. Activity in most of the end markets we serve has improved throughout 2021 since the start of the year, although like-for-like sales are still around 10% below the prior level. pandemic of 2019. The recovery in demand has had trade impacts, including increased material cost inflation on key inputs (including magnesium, aluminum and carbon fiber), labor availability and increases in energy and transportation costs. Currently, we expect the impact of material and energy cost inflation and labor and transportation constraints to continue at least until the fourth quarter of 2021, with uncertainty around outlook for 2022.
Operating objectives and trends In 2021, we expect the following operating objectives and trends to impact our business: â¢Continuing proactive response to the COVID-19 pandemic, including the health and well-being actions highlighted above, in addition to initiatives to stimulate demand for products, ensure continuity of supply and focus on cost saving programs; â¢Divestiture of non-strategic aluminum businesses (identified as discontinued operations) in the Gas Cylinders segment; â¢Refocus on productivity acceleration and growth recovery post COVID-19 as we capitalize on lean manufacturing initiatives and pursue faster product innovation; â¢Continued focus on developing global talent and implementing a high-performance culture; and â¢Continued focus on improved operating cash generation with lower restructuring activity and maintaining strong working capital performance. 23
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