ELMA, N.Y., March 29, 2012 /PRNewswire/ -- Servotronics, Inc. (NYSE Amex – SVT) reported an approximate 23.4% increase in Net Income to $2,626,000 (or $1.31 per share Basic and $1.24 Diluted) on Revenues of $34,181,000 for the fiscal year ended December 31, 2011 as compared to a Net Income of $2,128,000 (or $1.08 Basic and $1.01 Diluted) on Revenues of $31,659,000, respectively for the year ended December 31, 2010. The Company primarily attributes the year to year increase in Net Income to increased sales at the Company's Advanced Technology Group (ATG) in combination with cost containment activities and a decrease in the effective tax rate associated with the applicability of the appropriate tax credits.
The year ended December 31, 2011 marked the completion of a challenging ten-year period that included many domestic and global record-breaking events that had significant adverse effects on the domestic and foreign economies. Fortunately, Servotronics is benefiting from the recovering economy and the increasing procurements of domestic and foreign jet liners that are experiencing upward trends. Conversely, the Department of Defense's annual budget has become a target of opportunity to reduce expenditures and reallocate funds consistent with the appropriate response to the changing geo-political needs of the world. Also, the maintenance of the country's supply chain in support of the American Aerospace industry is a major concern and will, hopefully, be strongly supported notwithstanding any suggested alternatives. Also, the United States maintains a strong U.S. Aerospace trade surplus which adds support for the U.S. Aerospace Industry.
Servotronics believes it has strategically positioned itself by continuing to design and develop new products for new applications/programs across a multiple of industries. Although there is always a certain degree of uncertainty with all planned courses of action, the ability to respond quickly is a carefully developed Company skill that has substantial value when evaluating strategic and tactical plans of action. It is anticipated that over the near term the operating results for certain of the Company's products will be responsive to the volatility of certain of the government's procurement procedures and other unexpected economic events.