ELMA, N.Y., Aug. 14, 2012 /PRNewswire/ -- Servotronics, Inc. (NYSE MKT– SVT) reported net income from continuing operations for the second quarter ended June 30, of $622,000 (or $0.29 per share Basic and Diluted) on revenues of $7,856,000, an increase in net income of approximately $467,000 as compared to net income of $155,000 from continuing operations for the first quarter of 2012. For the second quarter ended June 30, 2011, net income from continuing operations was $729,000 (or $0.37 per share Basic, $0.35 per share Diluted) on revenues of $8,147,000. Net income from continuing operations for six month period ended June 30, 2012, was $777,000 (or $0.37 per share Basic, $0.36 per share Diluted) on revenues of $16,007,000 as compared to comparable net income for the same period ended June 30, 2011 of $1,211,000 (or $0.61 per share Basic, $0.57 per share Diluted) on revenues of $16,191,000. The Company primarily attributes the quarter to quarter fluctuations in net income to volatile procurement/shipping schedules along with the write off of start-up costs associated with new product lines, consolidation efforts and efficiency enhancements.
For the six months ended June 30, 2012 the Company reported net losses relative to discontinued operations of $428,000 (including $342,000 for the second quarter) as a result of the Company committing to a plan to enhance profit margins through the elimination of certain select components/products. The Company is in the process of further evaluating existing product lines and the consolidation of facilities.
On May 14, 2012 the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was paid on July 2, 2012 to shareholders of record on June 1, 2012 and was approximately $358,000 in the aggregate. These dividends do not represent that the Company will pay dividends on a regular or scheduled basis.
Servotronics believes it has strategically positioned itself by continuing to design and develop new products for new applications/programs across a multiple of industries and discontinuing those products with unacceptable margins. 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.
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