ELMA, N.Y., Aug. 12, 2011 /PRNewswire/ -- Servotronics, Inc. (NYSE Amex: SVT) reported that net income for the second quarter ended June 30, 2011 showed a significant increase when compared to the net income for the first quarter ended March 31, 2011. The net income for the second quarter ended June 30, 2011 increased approximately 70% to $716,000 (or $0.36 per share Basic and $0.34 Diluted) on revenues of $8,413,000 as compared to the reported net income of $418,000 (or $0.21 per share Basic, $0.19 per share Diluted) on revenues of $8,275,000 for the first quarter ended March 31, 2011. The net income for the three month period ended June 30, 2011, was reported at $716,000 (or $0.36 per share Basic, $0.34 per share Diluted) on revenues of $8,413,000 as compared to net income for the same three month period ended June 30, 2010 of $778,000 (or $0.40 per share Basic, $0.37 per share Diluted) on revenues of $8,203,000. Net income for the six month period ended June 30, 2011 was reported at $1,134,000 (or $0.57 per share Basic, $0.54 per share Diluted) on revenues of $16,688,000 as compared to net income for the same six month period ended June 30, 2010 of $1,401,000 (or $0.71 per share Basic, $0.66 per share Diluted) on revenues of $16,087,000. The Company primarily attributes the 2011 increase in revenues to increased shipments at the Company's Advanced Technology Group (ATG) partially offset by decreased shipments at the Company's Consumer Products Group (CPG). The resulting variations in net income represent a combination of product mix and the write-off of start-up costs related to new product lines/products primarily at the CPG.
Government procurements are expected to continue to be volatile and may result in significant period to period product delivery variances at the CPG and, to a lesser degree, at the ATG. The Company's aggressive marketing efforts are enhanced by ongoing product developments at both the ATG and the CPG. The Company continues to expand its capabilities in both the domestic and foreign markets by adding product lines, new products and resources to the Company's inventory of skills and expertise while simultaneously evaluating operational consolidation alternatives. The Company's current product developments, expanded capabilities and a self-sustaining global economy are expected to be beneficial to the Company's operations and the formation of a larger Company foundation for future growth.
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