EXHIBIT 99.1
[SERVOTRONICS, INC. LETTERHEAD]
March 30, 2007 SERVOTRONICS, INC. (AMEX- SVT) ANNOUNCES
YEAR END INCOME AND REVENUES
Elma, NY -- Servotronics, Inc. (Amex - SVT) reported net income of
$1,096,000 (or $0.55 per share basic, $0.51 per share diluted) on revenues of
$24,548,000 for the fiscal year ended December 31, 2006. Net income and revenues
for the fiscal year ended December 31, 2005 were $1,363,000 (or $0.66 per share
basic, $0.64 per share diluted) and $22,895,000 respectively. The $267,000
decrease in 2006 net income can generally be more than accounted for by the
$445,000 year to year after tax decrease in other income not attributable to
operations.
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, manufacturing
equipment, etc.). The CPG designs and manufactures cutlery, bayonets, machetes
and combat, survival, sporting, agricultural, and pocket knives for both
commercial and government applications.
The Company's ATG benefited by an over 8% growth in the Aerospace industry
during 2006 and the results of new product developments, new applications and
expanded marketing activities. The Aerospace Industries Association is
forecasting continuing Aerospace industry growth in 2007. The civil aircraft
sector of the industry is particularly strong as evidenced by the record number
of new orders for commercial airliners. A significant number of the Company's
proprietary ATG products have been designed, developed and are in production for
use in this strong segment of the Aerospace industry. The ATG's products are
also used in military applications such as control systems for aircraft,
helicopters and main battle tanks. Recently the Company expanded its markets to
include certain segments of the medical and industrial industries. The Company
will be participating in the forthcoming Paris Air Show, scheduled for June 18
to 24, 2007.
The Company's CPG has recently received two significant contracts for CPG
developed products for the military. These contracts amount to approximately
$4,000,000 and have schedules that start product deliveries in 2007 and continue
into 2008. The contracts are the result of the CPG's internal development of new
products for use in specific U.S. Military applications and requirements.
The Company and the CPG were particularly honored and recognized during the
past nine months when Nick Trbovich, Jr., Executive Vice President of
Servotronics, Inc., accepted three prestigious awards on behalf of the Company's
subsidiary, The Ontario Knife Company (OKC), for superb performance in support
of the U.S. Military. The first award is the GOLD AWARD from the Defense Supply
Center, Columbus, Ohio for being one of the U.S. Government's best suppliers. It
was the second year in a row that OKC received this award by demonstrating
excellent quality and on-time deliveries. The second award is THE 2006
INNOVATIVE BUSINESS PERFORMER OF THE YEAR AWARD FOR SMALL BUSINESS from the
Defense Logistics Agency for superior responsiveness and performance. The third
and most recently received award is THE 2006 ARMY AVIATION MATERIAL READINESS
AWARD from the Army Aviation Association of America. This Small Business Award
recognizes OKC's superior development efforts and the fielding of the Air Crew
Survival Egress Knife (ASEK) for the Combat Aviation Brigade 3D Infantry
Division. The trade journal Knife World, who reported on the receipt of these
awards, quoted the Award citation when stating that this CPG developed knife
provides Brigade Aircrews with "confidence in their increased ability to
successfully exit an aircraft under dire conditions." These awards are
continuing testimonials to the CPG's success in designing, developing and
manufacturing innovative cutlery products in support of the U.S. Military.
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.