ELMA, N.Y., Nov. 8, 2011 /PRNewswire/ -- Servotronics, Inc. (NYSE Amex – SVT) reported an approximate 341% increase in net income for the three month period ended September 30, 2011 to $904,000 (or $0.46 per share Basic, $0.44 per share Diluted) on an approximate 20% increase in revenues of $8,808,000 as compared to net income of $205,000 (or $.10 per share Basic and Diluted) on revenues of $7,346,000 for the comparable three month period ended September 30, 2010. Net income for the nine month period ended September 30, 2011 was increased approximately 27% to $2,038,000 (or $1.03 per share Basic, $0.97 per share Diluted) on an approximate 9% increase in revenues of $25,496,000. The comparable net income for the same nine month period of 2010 was $1,606,000 (or $0.82 per share Basic, $0.75 per share Diluted) on revenues of $23,433,000. The Company primarily attributes the increase in revenues and net income to increased shipments and product mix. Also reported was that the Company's 9/30/11 working capital continues strong at $20,123,000 as compared to $18,480,000 for the comparable period ended September 30, 2010. The Company's continuing strong financial position was specifically noted in the face of challenging global economic uncertainties. Also, there continues to be a consensus among economic/political commentators that U.S. tax rates will be higher in 2012.
In anticipation that new higher tax rates may be specifically imposed upon qualified dividends in 2012, the Company's Board of Directors declared a $0.15 per share dividend to be paid on December 16, 2011 to shareholders of record on November 28, 2011. This second dividend payment in 2011 was determined by the Company's Board of Directors in time for the shareholders to use the proceeds for end-of-year financial obligations and prior to any dividend income tax increases that may occur in 2012. Shareholders should not assume that dividends will be declared at comparable time periods or at all in the year 2012 unless the Company gives notice of such expectations/dividends.
The Company is composed of two groups – the Advanced Technology (ATG) and the Consumer Products Group (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, machetes and combat, survival, sporting, agricultural, pocket knives and other edged products for both commercial and government applications.