ELMA, N.Y., March 21, 2013 /PRNewswire/ -- Servotronics, Inc. (NYSE MKT: SVT) reported net income from continuing operations of $1,647,000 (or $.77 per share Basic and Diluted) on Revenues of $30,510,000 for the fiscal year ended December 31, 2012 as compared to net income from continuing operations of $3,659,000 (or $1.83 Basic and $1.73 Diluted) on Revenues of $32,899,000 for the year ended December 31, 2011.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 core competencies, 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 years ended December 31, 2012 and December 31, 2011, the Company reported net losses relative to discontinued operations of $1,327,000 and $1,033,000, respectively. The Company completed the previously reported sale of substantially all of the assets of Queen Cutlery Company, a wholly owned subsidiary of Servotronics, Inc. The sale took place on September 18, 2012. Also completed in the third and fourth quarter of 2012 was the cessation of operations and 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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