1110 Maple Street ¨ P.O. Box 300 ¨ Elma, New York 14059-0300 ¨ 716-655-5990 ¨ FAX 716-655-6012
June 30 2006
Servotronics , Inc.’s annual meeting was held in Buffalo , New York on Friday, June 30, 2006 . The Company’s current successes were reviewed and presented.
The current growth in the aerospace industry is directly benefiting the Company because of the many control components it is supplying for applications on the Boeing 700 and Airbus 300 series of commercial aircraft, various regional/business jets and significant military programs. Purchase orders and deliveries for commercial aircraft by both Boeing and Airbus have increased substantially from the industry’s lows subsequent to 9/11. Also, during the past year the Company has successfully negotiated multi-year agreements for a wide range of control products with certain of its largest customers. One of these multi-year agreements is for control components used on the Standard Missile and extends to the year 2010. It is expected that the revenue value of the agreement will be in excess of $2,000,000 per year and in excess of $11,000,000 through the life of the agreement.
Servotronics’ Advanced Technology Group designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, industrial equipment, etc.). Its Consumer Products Group designs and manufactures cutlery, bayonets, machetes and combat, survival, sporting, agriculture, and pocket knives for both commercial and government applications.
The Company reported that continuing product development and marketing efforts are resulting in both new product inquiries and prototype orders. The Company’s expansion of its activities in the medical markets and industrial applications has progressed from supplying prototypes to receiving production orders. Also, the Company’s increased presence in the global markets is also resulting in new prototype and preproduction orders for its proprietary control products.
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 30, 2006 , the Company has acquired 124,226 shares during the past 5 months.
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 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