Servotronics, Inc. Announces Second Quarter And Six Month Results For The Periods Ended June 30, 2010
ELMA, N.Y., Aug. 12 /PRNewswire-FirstCall/ -- Servotronics, Inc. (NYSE Amex: SVT) reported an approximate 68% increase in net income to $1,401,000 (or $0.71 per share Basic, $0.66 per share Diluted) on revenues of $16,087,000. The comparable net income for the same six month period of 2009 was $835,000 (or $0.43 per share Basic, $0.41 per share Diluted) on revenues of $16,644,000. Net income for the three month period ended June 30, 2010 increased approximately 10% to $778,000 (or $0.40 per share Basic and $0.37 Diluted) on revenues of $8,203,000 for the three month period ended June 30, 2010 as compared to net income of $710,000 (or $0.37 per share Basic, $0.34 per share Diluted) on revenues of $9,106,000 for the comparable three month period ended June 30, 2009. The Company primarily attributes the decrease in revenues to decreased shipments at the Company's Consumer Products Group partially offset by increased shipments at the Company's Advanced Technology Group. The resulting increases in net income represents a combination of several factors such as 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 domestic and foreign 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.
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