ELMA, N.Y., Nov. 13, 2012 /PRNewswire/ -- Servotronics, Inc. (NYSE MKT– SVT) reported net income from continuing operations for the third quarter ended September 30, 2012 of $306,000 (or $0.14 per share Basic and Diluted) on revenues of $7,516,000, compared to net income from continuing operations of $1,107,000 (or $0.56 per share Basic, $0.53 per share Diluted) for the same three month period ended September 30, 2011 on revenues of $8,550,000. Net income from continuing operations for the nine month period ended September 30, 2012, was $1,346,000 (or $0.63 per share Basic and Diluted) on revenues of $23,302,000 as compared to net income for the same nine month period ended September 30, 2011 of $2,588,000 (or $1.31 per share Basic, $1.23 per share Diluted) on revenues of $24,592,000. The Company primarily attributes the decrease in net income from continuing operations to a decrease in revenues and shipments for government applications at the Company's Consumer Products Group.
Government procurements are expected to continue to be volatile and result in significant variances in period to period product delivery requirements. The Company continues to expand its capabilities by adding product lines and resources to the Company's inventory of skills and product offerings. The Company's many product developments are expected to benefit from continuing cost improvements through manufacturing enhancement and consolidation as the Company converts each challenge into an opportunity.
For the three and nine months ended September 30, 2012 the Company reported net losses relative to discontinued operations of $450,000 and $1,121,000, respectively. The Company completed the previously reported sale of the Queen Cutlery Company, a wholly owned subsidiary of Servotronics, Inc. to Daniels Family Cutlery. The sale took place on September 18, 2012. Also reported in the third quarter of 2012 was the shutdown of Aero Metal Products, Inc., a wholly owned subsidiary of the Company that primarily produced scissors and shears. Servotronics believes it is strategically positioning itself by continuing to design and develop new products for new applications/programs across a multiple of industries while discontinuing those products with unacceptable margins.
The Company is composed of two groups – the ATG and the 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, pocket knives, machetes and combat, survival, sporting, agricultural knives and other edged products for both commercial and government applications.
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