Servotronics, Inc. (NYSE MKT: SVT) reported an approximate 17% increase
in revenue to $8,171,000 for the first quarter ended March 31, 2015
compared to $6,990,000 for the same period of 2014. The increase in
revenue is the result of increases in commercial shipments at both the
Advanced Technology Group (ATG) and Consumer Products Group (CPG). Net
income was $2,771,000 (or $1.27 per share Basic and $1.23 Diluted) for
the first quarter ended March 31, 2015 compared to a net loss of
$145,000 (or $(0.07) per share Basic and $(0.06) Diluted) for the
comparable period ended March 31, 2014. The $2,916,000 increase in net
income is a result of a pre-tax insurance settlement of $4,500,000
related to a previously disclosed arbitration award.
On April 7, 2015, the Company received a Certificate of Occupancy for
the CPG's newly constructed manufacturing facility. "With over half of
the $4,000,000 investment being complete, we are excited to be producing
in the new building. While we are acutely aware of the challenges that
lie ahead, we intend to capitalize on the potential for increased
operational efficiencies," stated Kenneth D. Trbovich, President of both
the Advanced Technology and Consumer Products Groups.
The Company is composed of two groups – the ATG and the CPG. The ATG
primarily designs, develops and manufactures servo controls 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, pocket knives, machetes and
combat knives, survival, sporting, agricultural knives and other edged
products for both commercial and government applications.
FORWARD-LOOKING STATEMENTS
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 planned growth efforts and 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, market demand and acceptance both for the
Company's products and its customers' products which incorporate
Company-made components and the ability of the Company to successfully
execute its strategic plans. 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 MKT
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