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May 14, 2010 SERVOTRONICS, INC. ANNOUNCES Elma, NY
– Servotronics, Inc. (NYSE Amex – SVT) reported a significant
increase in net income to $622,000 (or $0.32 per share Basic -
$0.29 per share Diluted) on a 4.6% increase in revenues to $7,884,000
for the first quarter ended March 31, 2010 as compared to net
income of $125,000 (or $0.06 per share Basic and Diluted) on revenues
of $7,538,000 for the comparable period ended March 31, 2009. The Company primarily attributes the increase
in revenues and net income to a combination of several factors
such as increased shipments, product mix, cost containment activities
and other recession mitigating factors. As the
Company previously reported, certain major manufacturers of commercial
aircraft have publicly announced that they have initiated plans
to ramp-up production to support forecasted increases in aircraft
deliveries in late 2010, 2011 and 2012. Aircraft component suppliers
are being advised to increase their manufacturing capabilities
to support this forecasted accelerated aircraft production. There is a growing consensus that the world-wide
recession is in the early stages of a slow recovery which may
or may not be self-sustainable. Also,
the Aerospace Industry Association’s report issued in December
2009 was cautiously optimistic and confident in the future of
Aerospace. Government
procurements are expected to continue to be volatile and may result
in significant period to period performance fluctuations. The
Company’s marketing efforts continue to be enhanced by ongoing
product developments at both the Advanced Technology Group (ATG)
and the Consumer Products Group (CPG).
The Company recently expanded its capabilities
in its continuing efforts to add product lines and resources to
the Company’s inventory of skills and product offerings. The Company’s
many ATG aerospace products that are in a wide range of programs
are expected to benefit from a recovering Global economy. The
CPG’s product developments and expanded capabilities have led
to significant government procurements and the expansion of the
CPG’s product line. The Company
is composed of two groups – the ATG and the CPG. The ATG primarily
designs, develops and manufactures servo control and other components
for various commercial and government applications (i.e., aircraft,
jet engines, missiles, manufacturing equipment, etc.). The CPG
designs and manufactures cutlery, bayonets, machetes and combat,
survival, sporting, agricultural, pocket knives and other edged
products for both commercial and government applications. FORWARD-LOOKING
STATEMENTS Certain paragraphs
of this release contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, such as those pertaining
to the Company's expectation of new business and success in its
entry into new product programs. Forward-looking statements involve
numerous risks and uncertainties. The Company derives a material
portion of its revenue from contracts with agencies of the U.S.
Government or their prime contractors. The Company's business
is performed under fixed price contracts and the following factors,
among others, could cause actual results and future events to
differ materially from those set forth or contemplated in the
forward-looking statements: uncertainties in today's global economy
and global competition, difficulty in predicting defense appropriations,
the vitality and ability of the commercial aviation industry to
purchase new aircraft, the willingness and ability of the Company's
customers to fund long-term purchase programs, and market demand
and acceptance both for the Company's products and its customers'
products which incorporate Company-made components. The success
of the Company also depends upon the trends that affect the national
and international economy. Readers are cautioned not to place
undue reliance on forward-looking statements, which reflect management's
analysis only as of the date hereof. The Company assumes no obligation
to update forward-looking statements. SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE Amex |
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