2002 Annual Meeting Report
1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
July 3, 2002
(AMEX-SVT) Servotronics’ Chairman and President, Dr. Nicholas D. Trbovich, reviewed highlights of the Company’s operational and financial achievements in 2001 including the 68% year-to-year increase in net income and the Company’s current strong balance sheet. The detailed financial report for the year 2001 was previously publicly reported.
The Company’s registration under two world quality standards, AS9100 and ISO 9001, was reported. These standards are important milestones in the continuing evolution of the aerospace industry. It is part of a global effort to insure manufacturing excellence by all aerospace manufacturers.
Dr. Trbovich reviewed forecasts for both commercial and defense applications in the aerospace industry and spoke of the effects of 9/11 on the Company and global markets. Recognizing the opportunity in the anticipated “robust military market”, he commented on the ability of the Company to at least partially replace anticipated temporary decreases in commercial aerospace revenues with increased defense revenues. Initial evidence of this occurrence is that defense revenue increased from 25% of the total Advanced Technology Group’s (ATG) revenue in 2001 to 34% of the total ATG’s revenue in the first quarter of 2002.
As the aviation industry celebrates its 100 year anniversary in 2003, Servotronics will celebrate it’s 43rd anniversary of operation in the industry. Servotronics 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’s new twinturbo fan aircraft, the Airbus and Boeing commercial aircraft, DeHavilland DHC8-40 and various other programs.
Re-elected as Company Directors at the meeting were Dr. Nicholas D. Trbovich, Donald W. Hedges, Dr. William H. Duerig, and Nicholas D. Trbovich, Jr.
Servotronics is composed of two operating groups – the Advanced Technology Group, and the Consumer Products Group. The Consumer Products Group designs and manufactures cutlery, sporting knives 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