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Servotronics reports big hike in fourth-quarter net income

Servotronics' profits increased sharply in its fourth quarter, helped by a modest increase in revenues.

The Elma-based motion-control and equipment maker reported net income of $522,000, more than double the $235,000 it reported a year ago. Its income per diluted share was 25 cents, up from 11 cents a year earlier.

Servotronics' quarterly sales were $8.23 million, a slight increase from $8.1 million in 2009.

For the full year, Servotronics' net income rose 12 percent to $2.13 million. Its revenues declined 4 percent, to $32 million.

Servotronics is composed of two groups: its advanced technology group, which designs, develops and makes servo controls and other components for aircraft and other applications; and its consumer product group, which designs and makes cutlery.

The company attributed its 2010 increase in profits mainly to an increase in sales, profit margins and cost containment at its Advanced Technology Group, along with improved profit margins and a more favorable product mix at the Consumer Products Group. The Advanced Technology Group accounted for 61 percent of total sales.

The decline in sales in its Consumer Products Group was mainly due to decreased government shipments, stemming from the completion of a significant contract, Servotronics said.

The company noted that some major producers of commercial aircraft have announced plans to ramp up production to support customers' forecasted increase in aircraft deliveries this year and in 2012.

Servotronics reported having 286 employees as of the end of 2010, including 217 in Western New York.

The company's stock closed Thursday at $8.75 per share on the American Stock Exchange, up 11 cents.

e-mail: mglynn@buffnews.com

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