ELMA, N.Y., May 14 /PRNewswire-FirstCall/ -- Servotronics, Inc. (NYSE Amex: SVT) reported a significant increase in net income to $622,000 (or $0.32 per share Basic - $0.29 per share Diluted) on a 4.6% increase in revenues to $7,884,000 for the first quarter ended March 31, 2010 as compared to net income of $125,000 (or $0.06 per share Basic and Diluted) on revenues of $7,538,000 for the comparable period ended March 31, 2009. The Company primarily attributes the increase in revenues and net income to a combination of several factors such as increased shipments, product mix, cost containment activities and other recession mitigating factors.
As the Company previously reported, certain major manufacturers of commercial aircraft have publicly announced that they have initiated plans to ramp-up production to support forecasted increases in aircraft deliveries in late 2010, 2011 and 2012. Aircraft component suppliers are being advised to increase their manufacturing capabilities to support this forecasted accelerated aircraft production. There is a growing consensus that the world-wide recession is in the early stages of a slow recovery which may or may not be self-sustainable. Also, the Aerospace Industry Association's report issued in December 2009 was cautiously optimistic and confident in the future of Aerospace.
Government procurements are expected to continue to be volatile and may result in significant period to period performance fluctuations. The Company's marketing efforts continue to be enhanced by ongoing product developments at both the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The Company recently expanded its capabilities in its continuing efforts to add product lines and resources to the Company's inventory of skills and product offerings. The Company's many ATG aerospace products that are in a wide range of programs are expected to benefit from a recovering Global economy. The CPG's product developments and expanded capabilities have led to significant government procurements and the expansion of the CPG's product line.