1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
July 2, 2009
(NYSE Amex – SVT)
Servotronics, Inc.’s (Company) Annual Meeting was held in Buffalo, New York on Thursday July 2, 2009. The Company’s current activities were reviewed and presented. 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 year 2008 was a record year for operations and, as previously reported, produced an approximate 48.9% increase in net income to $3,055,000 on revenues of $34,170,000 for the fiscal year ended December 31, 2008 as compared to net income and revenues for the fiscal year ended December 31, 2007 of $2,052,000 and $31,378,000 respectively. The Company attributes the increased revenue and net income to increased product shipments at the Company’s Advanced Technology Group (ATG) and a favorable mix of products and cost containment activities. The year 2009 is currently being affected by the Global Recession and consequent customer-directed delivery reschedules and other recession-related factors. During the past almost 50 years the Company has operated through six recessions and other periods of economic uncertainties and subsequently grew to set new performance records. Servotronics’ 50th Anniversary occurs in August 2009.
The Company has expanded its presence in both the domestic and foreign markets. The Company participates in major trade shows such as the Paris Air Show, the Farnborough Air Show, and at MEDICA in Germany as well as various other foreign and domestic trade shows. Servotronics, Inc. continues to be successful in increasing ATG product applications as evidenced by the receipt of both prototype and production orders for products in the medical field, manufacturing equipment and various foreign programs. The CPG product applications are being expanded through new developments and acquisitions of related product lines.
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.
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 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