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Announces Nine Month and Third Quarter Results
Elma, NY, November 14, 2002 -- Servotronics, Inc. (Amex - SVT) reported net income for the nine month period ended September 30, 2002 of $245,000 (or $0.13 per share - Basic and Diluted) on revenue of $11,895,000 as compared to net income of $448,000 (or $0.24 per share - Basic and Diluted) on revenue of $13,421,000 for the same period in 2001. Third quarter net income was $6,000 (or $0.00 per share - Basic and Diluted) on revenue of $3,761,000 as compared to net income of $112,000 (or $0.06 per share - Basic and Diluted) on revenue of $4,225,000 for the same period in 2001. The decreases in revenues for the nine month period and third quarter ended September 30, 2002 are attributed to previously reported reductions and stretch-outs in the commercial aerospace markets for the Company’s Advanced Technology Group’s (ATG) products combined with lower revenues at the Consumer Products Group due to certain reprioritizations and reductions in government procurements, regionalization of markets by a significant customer and a general decline in retail markets for household knives. Also, substantially contributing to the decrease in net income were increased expenses to procure new applications including the engineering of new products which are expensed as they occur, increased insurance costs of up to 70% as well as increased costs for resources dedicated to merger/acquisition evaluations, for expanded sales and marketing activities, and for new reporting requirements for public companies. The ATG’s 9/30/02 funded backlog increased approximately 20% when compared to the ending backlog for the second quarter of 2002.
As previously reported, Raytheon Missile Systems awarded Servotronics a contract for the production of control hardware for the Standard Missile program. The value of that contract has been recently increased by $522,000 to over $3,200,000. Servotronics’ planned production for this contract will commence in 2002 and be completed in 2004.
It is generally recognized that current events since 9/11/01 have combined and are having a significant negative impact on the U.S. and global economies which is being at least partially offset by increases in government and defense spending. Therefore, while the Company is optimistic, it is unable to precisely quantify with certainty the net long term effect that these events will have on the Company. However, the Company has a long successful history of improving its capabilities and successfully moving forward notwithstanding the cyclical nature of the aerospace industry, recessions or other adverse circumstances.
Servotronics, Inc. is currently providing products for a significant number of aerospace programs such as the F/A-18 E/F Super Hornet and other jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor, Joint Service Aircraft, the Blackhawk, Apache, A-10 and other helicopters, the Standard Missile, numerous business and regional jet aircraft, Raytheon's Hawker Horizon Aircraft, Embraer new TwinTurbo Fan aircraft, the Airbus and Boeing commercial aircraft, DeHavilland DHC8-40 and various other programs.
Servotronics, Inc. is composed of two operating groups - the Advanced Technology Group and the Consumer Products Group. The Advanced Technology Group designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, satellite launch vehicles, etc.). The Consumer Products Group designs and manufactures sporting knives, cutlery, bayonets and machetes 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 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.
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Announces First Quarter Results
Elma, NY, May 15, 2002-- Servotronics, Inc. (Amex - SVT) reported a net income of $106,000 (or $0.06 per share - Basic and Diluted) on revenue of $3,834,000 for the quarter ended March 31, 2002 as compared to net income of $122,000 (or $0.06 per share - Basic and Diluted) on revenue of $4,482,000 for the comparable period ended March 31, 2001. This approximate 13% decrease in net income in 2002 is attributable to an overall decrease in sales revenue of approximately 14%. Nonetheless, the net income for the first quarter of 2002 represents an approximate 60% increase in net income when compared to the first quarter of 2000 and the continuation of an overall six year positive trend. The 2002 first quarter decrease in revenue is the result of the reduction and stretch-outs in commercial aircraft production and decreased demand in other commercial markets, partially offset by an approximate 19% growth in government and defense revenue when comparing the quarter ended March 31, 2002 to the comparable period of 2001. The actual decrease in commercial aircraft production resulting from the events of 9/11/01 is consistent with earlier reports from Boeing and BAE.
The Advanced Technology Group’s funded backlog as of March 31, 2002 continues to be strong and the Company is expecting an increase in purchase orders for the second quarter of 2002 as compared to the first quarter of 2002. Notwithstanding the positive indicators, it is generally recognized that the events of 9/11/01 have had a significant negative impact on the U.S. and global economies which is being offset or partially offset by increases in government and defense spending. Therefore, while the Company is optimistic, it is unable to predict or quantify with certainty the net effect that these events will have on the Company. However, the Company has a long successful history of expanding capabilities which are often enhanced by the cyclical nature of the aerospace and defense industries.
Servotronics, Inc. is currently providing products for a significant number of aerospace programs such as the F/A-18 E/F Super Hornet and other jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor, Joint Service Aircraft, the Blackhawk, Apache, A-10 and other helicopters, the Standard Missile, numerous business and regional jet aircraft, Raytheon's Hawker Horizon Aircraft, Embraer new TwinTurbo Fan aircraft, the Airbus and Boeing commercial aircraft, DeHavilland DHC8-40 and various other programs.
Servotronics, Inc, is composed of two operating groups - the Advanced Technology Group and the Consumer Products Group. The Advanced Technology Group designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, satellite launch vehicles, etc.). The Consumer Products Group designs and manufactures sporting knives, cutlery, bayonets and machetes 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 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.
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Announces Year End Results
Elma, NY, March 28, 2002 -- Servotronics, Inc. (Amex - SVT) reported
an approximate 68% increase in net income of $700,000 (or $0.37 per
share - Basic and Diluted) on revenues of $17,934,000 for the year
ended December 31, 2001 as compared to net income of $418,000 (or
$0.23 per share Basic and $0.21 per share Diluted) on revenues of
$16,969,000 for the comparable period ended December 31, 2000. The
increase in net income was primarily the result of increased revenues
at the Company’s Advanced Technology Group (ATG).
The ATG’s year to year funded backlog as of December 31, 2001 increased
approximately 23%. Notwithstanding this significant increase in
backlog, it is recognized that the events of September 11, 2001
have had a significant negative impact on the U.S. and global commercial
aerospace and other industries. Although certain defense programs
may offset or partially offset the adverse effects of these events,
Servotronics anticipates experiencing consequences of these events
during 2002.
Servotronics, Inc. is currently providing products for a significant
number of aerospace programs such as the F/A-18 E/F Super Hornet
and other jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor,
Joint Service Aircraft, the Blackhawk, Apache, A-10 and other helicopters,
the Standard Missile, numerous business and regional jet aircraft,
Raytheon's Hawker Horizon Aircraft, Embraer new TwinTurbo Fan aircraft,
the Airbus and Boeing commercial aircraft, DeHavilland DHC8-40 and
various other programs.
Servotronics, Inc, is composed of two operating groups - the Advanced
Technology Group and the Consumer Products Group. The Advanced Technology
Group designs, develops and manufactures servo control and other
components for various commercial and government applications (i.e.,
aircraft, jet engines, missiles, satellite launch vehicles, etc.).
The Consumer Products Group designs and manufactures sporting knives,
cutlery, bayonets and machetes 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 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.
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Announces 9 Month and
3rd Quarter Results
Elma, NY, November 13, 2001 -- Servotronics, Inc. (Amex - SVT)
reported an approximate 81% increase in third quarter net income
to $112,000 (or $0.06 per share - Basic and Diluted) on revenue
of $4,225,000 as compared to net income of $62,000 (or $0.03 per
share - Basic and Diluted) on revenue of $4,129,000 for the same
period in 2000. Net income for the nine month period ended September
30, 2001 was $448,000 (or $0.24 per share - Basic and Diluted) on
revenue of $13,421,000 as compared to net income of $286,000 (or
$0.16 per share - Basic and $0.15 per share - Diluted) on revenue
of $12,855,000 for the same period in 2000. The net increase in
sales is the result of increased shipments at the Company’s Advanced
Technology Group (ATG). Purchase Orders received by the ATG during
the first nine months of 2001 increased by over 40% as compared
to Purchase Orders received during the comparable period in 2000.
Included in the new Purchase Orders in 2001 is Raytheon’s exercise
of options for over $1,000,000 of component parts for the Standard
Missile II .. a ship-board anti-aircraft missile which is used by
the U.S. Government and certain foreign navies. The purchase of
additional quantities of Standard Missile II components is currently
being negotiated.
Servotronics, Inc. is currently providing products for a significant
number of aerospace programs such as Raytheon's Hawker Horizon Aircraft,
Embraer new TwinTurbo Fan aircraft, the Airbus and Boeing commercial
aircraft, DeHavilland DHC8-40, F/A-18 E/F Super Hornet and other
jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor Joint Service
Aircraft, the Blackhawk, Apache, A-10 and other helicopters, numerous
business and regional jet aircraft, satellite launch vehicles, KTX
and various other programs.
Servotronics, Inc, is composed of two operating groups - the Advanced
Technology Group and the Consumer Products Group. The Advanced Technology
Group designs, develops and manufactures servo control and other
components for various commercial and government applications (i.e.,
aircraft, jet engines, missiles, satellite launch vehicles, etc.).
The Consumer Products Group designs and manufactures sporting knives,
cutlery, bayonets and machetes 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 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.
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Announces 6 Month and
2nd Quarter Results
Elma, NY, August 13, 2001 -- Servotronics, Inc. (Amex - SVT) reported
a 50% increase in net income to $336,000 (or $0.18 per share - Basic
and Diluted) on revenue of $9,196,000 for the six month period ended
June 30, 2001 as compared to net income of $224,000 (or $0.12 per
share Basic and Diluted) on revenue of $8,726,000 for the same period
in 2000. Net income for the second quarter of 2001 was $214,000
(or $0.11 per share - Basic and Diluted) on revenue of $4,714,000
as compared to net income of $158,000 (or $0.09 per share - Basic
and Diluted) on revenue of $4,470,000 for the same period in 2000.
The net increase in sales is the result of increased shipments at
the Company’s Advanced Technology Group (ATG) that was partially
offset by a decrease in revenue by the Consumer Products Group (CPG).
The decrease in shipments at the CPG was primarily attributable
to the government's delay in the placement of follow-on orders for
the M-9 bayonet. The Company primarily attributes the ATG's increases
in revenue to proactive marketing and product development.
Servotronics, Inc. is currently providing products for a significant
number of aerospace programs such as Raytheon's Hawker Horizon Aircraft,
Embraer new TwinTurbo Fan aircraft, the Airbus 300 and Boeing 700
series of commercial aircraft, DeHavilland DHC8-40, F/A-18 E/F Super
Hornet and other jet fighters; the Bell/Boeing MV-22 Osprey Tiltrotor
Joint Service Aircraft, the Blackhawk, Apache, A-10 and other helicopters,
numerous business and regional jet aircraft, Standard Missiles,
satellite launch vehicles, KTX and various other programs.
Servotronics, Inc, is composed of two operating groups - the Advanced
Technology Group and the Consumer Products Group. The Advanced Technology
Group designs, develops and manufactures servo control and other
components for various commercial and government applications (i.e.,
aircraft, jet engines, missiles, satellite launch vehicles, etc.).
The Consumer Products Group designs and manufactures sporting knives,
cutlery, bayonets and machetes 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 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.
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