[Servotronics, Inc. Letterhead]
Exhibit 99.1
August 14, 2006 SERVOTRONICS, INC. (AMEX- SVT) ANNOUNCES
SECOND QUARTER AND SIX MONTH RESULTS
FOR THE PERIODS ENDED JUNE 30, 2006
Elma, NY -- Servotronics, Inc. (Amex - SVT) reported an approximate 32.2%
year to year increase in net income to $258,000 (or $0.13 per share - Basic and
$.012 per share - Diluted) on an 11.8% increase in revenues to $6,860,000 for
the second quarter ended June 30, 2006. The comparable net income for the second
quarter of 2005 was $195,000 (or $0.09 per share Basic and Diluted) on revenues
of $6,136,000. Year to year net income for the six month period ended June 30,
2006 increased approximately 61.4% to $531,000 (or $0.26 per share - Basic and
$0.25 per share - Diluted) on a 6.1% increase in revenues to $12,538,000. The
comparable net income for the six month period ended June 30, 2005 was $329,000
(or $0.16 per share - Basic and $0.15 per share - Diluted) on revenues of
$11,819,000.
On Wednesday, August 9, 2006, Servotronics received Raytheon Missile
Systems' prestigious 2006 Supplier Excellence 4-Star Award in recognition of
Servotronics' "exemplary performance and contribution to the success of Raytheon
and our customers" (as cited on the Award). Servotronics is one of only three
suppliers in 2006 to receive this 4-Star Award recognition out of a total of
over 1,900 suppliers to Raytheon Missile Systems. Servotronics' 100% on-time
delivery performance and 100% quality were specifically noted and were the
highest quality and on-time delivery ratings among the three 4-Star Award
winners. This elite Award also required a high business assessment score in such
areas as leadership, management, organization, technical expertise, engineering,
product development, production capabilities and other operational
characteristics. Servotronics supplies proprietary control products to Raytheon
Missile Systems for the Standard Missile program. These products are being
supplied under a Long Term Agreement which extends to 2010. Over 100,000 units
have been supplied for this Program with more forecasted. The estimated
going-forward value of this Long Term Agreement is over $2,000,000 per year for
the Company.
In January of 2006, the Company's Board of Directors authorized the
purchase by the Company of up to 250,000 shares of its common stock in the open
market or in privately negotiated transactions. As of July 31, 2006, the Company
has purchased 105,041 shares under this program.
The Company is composed of two groups - the Advanced Technology Group (ATG)
and the Consumer Products Group (CPG). The ATG primarily designs, develops and
manufactures servo control and other components for various commercial and
government applications (i.e., aircraft, jet engines, missiles, satellite launch
vehicles, etc.). The CPG designs and manufactures cutlery, bayonets, machetes
and combat, survival, sporting, agricultural, and pocket knives for both
commercial and government applications.
FORWARD-LOOKING STATEMENTS
Certain paragraphs of this release contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, such as those pertaining to the
Company's expectation of new business and success in its entry into new product
programs. Forward-looking statements involve numerous risks and uncertainties.
The Company derives a material portion of its revenue from contracts with
agencies of the U.S. Government or their prime contractors. The Company's
business is performed under fixed price contracts and the following factors,
among others, could cause actual results and future events to differ materially
from those set forth or contemplated in the forward-looking statements:
uncertainties in today's global economy and global competition, difficulty in
predicting defense appropriations, the vitality and ability of the commercial
aviation industry to purchase new aircraft, the willingness and ability of the
Company's customers to fund long-term purchase programs, and market demand and
acceptance both for the Company's products and its customers' products which
incorporate Company-made components. The success of the Company also depends
upon the trends that affect the national economy. Readers are cautioned not to
place undue reliance on forward-looking statements, which reflect management's
analysis only as of the date hereof. The Company assumes no obligation to update
forward-looking statements.
SERVOTRONICS, INC. (SVT) IS LISTED ON THE AMERICAN STOCK EXCHANGE.