ELMA, N.Y., May 13, 2013 /PRNewswire/ -- Servotronics, Inc. (NYSE MKT: SVT) reported net income of $177,000 (or $0.08 per share Basic and Diluted) for the first quarter ended March 31, 2013 as compared to net income of $63,000 (or $0.03 per share Basic and Diluted) for the comparable period ended March 31, 2012.
The Company attributes the increase in net income primarily to the previously reported strategic focus on core competencies that led to the 2012 sale of substantially all of the assets of Queen Cutlery Company, a wholly owned subsidiary of Servotronics as well as the cessation of operations and shutdown of Aero Metal Products, Inc., also a wholly owned subsidiary of the Company. Servotronics continues to strategically position itself through the design and development of new products for new applications/programs across a multiple of industries.
Revenue from continuing operations for the first quarter ended March 31, 2013 was $7,342,000 compared to revenue from continuing operations of $8,067,000 for the comparable period ended March 31, 2012. The decrease in revenue is primarily attributable to a decrease in Government sales at the Consumer Products Group (CPG) that was not fully offset by increased commercial sales at both the CPG and the Company's Advanced Technology Group (ATG). Government procurements are expected to continue to be volatile and result in significant variances from period to period and as such; the CPG is investing in, and focusing on, a realignment of commercial and Government applications. Such realignment is not expected to be realized immediately.
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.