Servotronics, Inc.
 
   
 
audit committee  
forward looking statement  
 

November 14, 2007

SERVOTRONICS, INC. (AMEX– SVT)
REPORTS RECORD NINE MONTH AND 3rd QUARTER RESULTS
FOR THE PERIODS ENDED SEPTEMBER 30, 2007

Servotronics, Inc. (AMEX – SVT) reported an approximate 110% year to year increase in net income to a record $476,000 (or 25 cents per share basic, 22 cents per share diluted) on an approximate 50% increase in revenues to a record $8,464,000 for the third quarter ended September 30, 2007. The comparable net income for the third quarter of 2006 was $227,000 (or 12 cents per share basic, 11 cents per share diluted) on revenues of $5,646,000. Year to year net income for the nine month period ended September 30, 2007 increased approximately 48% to a record $1,119,000 (or 58 cents per share basic, 53 cents per share diluted) on an approximate 31% increase in revenues to a record $23,368,000. The comparable net income for the nine month period ended September 30, 2006 was $758,000 (or 38 cents per share basic, 35 cents per share diluted) on revenues of $17,811,000. The Company attributes the increased revenue and net income for the nine and three month periods ended September 30, 2007 to increased shipments and demand for its products in conjunction with continuing cost containment activities and the onset of certain production programs whose development costs were appropriately expensed in prior periods.

The Company is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (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, and pocket knives for both commercial and government applications.

The ATG continues its aggressive business development efforts in its primary markets and is broadening its focus to include new – both domestic and foreign - markets that are consistent with its core competencies. Based on the success of these efforts and in conjunction with the onset of certain production programs, the ATG expects this upward trend in sales to continue into 2008.

The CPG continues to have a strong backlog for government-related survival oriented cutlery products that require deliveries in 2007 and 2008. The Company’s increased sales activities in foreign markets are continuing to result in prototype orders for new programs and application opportunities. In the third quarter of 2007, the CPG acquired a significant amount of tooling and assets of Camillus Cutlery through a secured creditor’s auction with the intent to reconnect with the previous customers of Camillus Cutlery and expand the CPG’s current product lines.
In January of 2006, the Company’s Board of Directors authorized the purchase by the Company of up to 250,000 shares of its common stock in the open market or in privately negotiated transactions. As of September 30, 2007, the Company has purchased 194,357 shares under this authorization.

SERVOTRONICS, INC. (SVT) IS LISTED ON THE AMERICAN STOCK EXCHANGE.

 

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