1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
July 2, 2010
Reports Re-Election of Directors at Annual Shareholders Meeting
(NYSE Amex – SVT)
Servotronics, Inc.’s (Company) Annual Meeting was held in Buffalo, New York on Friday July 2, 2010. 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 2009 marked the 50th anniversary of Servotronics, Inc. (Company). It was a year subject to the pressures of the global recession and consequential contract stretch-outs and to a lesser degree contract cancellations. Therefore, year-to-year net income decreased, but nonetheless exhibited a strong performance from the perspective of the foregoing facts and circumstances. Also, the significant increase in net income for the first quarter of 2010 as compared to the first quarter of 2009 was reported earlier. The Company’s operational performance in 2009 demonstrated strength, resiliency and an ability to successfully operate during difficult times. The Company reported net income of $1,903,000, on a total revenue of $33,008,000 in 2009. This compares to a net income of $3,055,000 on revenues of $34,170,000 for the year 2008. The Company’s strong balance sheet and significant liquidity were clearly presented and reviewed at the Annual Meeting. On 12/31/09, Servotronics’ Working Capital was approximately $17,600,000, the Current Ratio and Quick Ratio were 6.2 to 1 and 2.8 to 1 respectively and the long term Institutional Debt to equity ratio was .17 to 1. All of these 2009 business performance ratios clearly show continued strength and enhancement from an already strong foundation in 2008.
Also noted was that the Company declared a $0.15 cash dividend per share to shareholders of record on 3/10/10. This cash dividend on the Company’s common stock for the third consecutive year does not represent that the Company will pay dividends on a regular or scheduled basis However, our Board of Directors will continue to consider the distribution of cash dividends based on the relevant facts and circumstances.
The Company has expanded its presence in both the domestic and foreign markets. Specifically referenced and noted was a partial description of the numerous major programs and projects that have used or are using Servotronics’ control products as key components during the past 50 years as the Company looks forward to the future.
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