Servotronics, Inc. Announces Year End Results
1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
March 28, 2002
SERVOTRONICS, INC. (AMEX-SVT)
ANNOUNCES YEAR END RESULTS
Elma, NY — Servotronics, Inc. (Amex – SVT) reported an approximate 68% increase in net income of $700,000 (or $0.37 per share – Basic and Diluted) on revenues of $17,934,000 for the year ended December 31, 2001 as compared to net income of $418,000 (or $0.23 per share Basic and $0.21 per share Diluted) on revenues of $16,969,000 for the comparable period ended December 31, 2000. The increase in net income was primarily the result of increased revenues at the Company’s Advanced Technology Group (ATG).
The ATG’s year to year funded backlog as of December 31, 2001 increased approximately 23%. Notwithstanding this significant increase in backlog, it is recognized that the events of September 11, 2001 have had a significant negative impact on the U.S. and global commercial aerospace and other industries. Although certain defense programs may offset or partially offset the adverse effects of these events, Servotronics anticipates experiencing consequences of these events during 2002.
Servotronics, Inc. is currently providing products for a significant number of aerospace programs such as the F/A-18 E/F Super Hornet and other jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor, Joint Service Aircraft, the Blackhawk, Apache, A-10 and other helicopters, the Standard Missile, numerous business and regional jet aircraft, Raytheon’s Hawker Horizon Aircraft, Embraer new TwinTurbo Fan aircraft, the Airbus and Boeing commercial aircraft, DeHavilland DHC8-40 and various other programs.
Servotronics, Inc, is composed of two operating groups – the Advanced Technology Group and the Consumer Products Group. The Advanced Technology Group designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, satellite launch vehicles, etc.). The Consumer Products Group designs and manufactures sporting knives, cutlery, bayonets and machetes for both commercial and government applications.
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