1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
June 29, 2007
Servotronics, Inc.’s annual meeting was held in Buffalo, New York on Friday, June 29, 2007. The Company’s current successes were reviewed and presented. The Company is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The ATG 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, agriculture, and pocket knives for both commercial and government applications.
The year 2006 was one of increasing strength for the Aerospace industry and for Servotronics. The Company’s net income in 2006 was $1,096,000 or approximately $0.55 per share on revenues of $24,548,000, a $177,000 increase in net income after removing the effects of other income not attributable to operations when compared to 2005. The year 2006 was the fourth consecutive year of increasing revenues and net income from operations. This continued revenue improvement represents an almost 60% increase when compared to Servotronics’ post 9/11 revenues which decreased to a low of $15,607,000 in 2002. 2002 was the first full year the Aerospace industry and the economy in general felt the devastating effects of the 9/11 terror attack. This positive trend is anticipated to continue through 2007.
Recently the Company exhibited at the Paris International Air Show, which is structured to promote and increase the efficient exchange of information, to provide leads and to establish communication conduits at all marketing, administration and engineering levels. During the show Boeing and Airbus reported substantial new aircraft orders, which benefits the Company’s ATG as a long term supplier of control valves for both the Airbus and Boeing series of aircraft.
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.
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 June 29, 2007, the Company has acquired 194,357 shares during the past 18 months.
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