Share this article

print logo

Servotronics earnings fall on lower sales

Servotronics said second-quarter profits fell 11.3 percent from a year ago on lower sales, but rebounded from a first quarter loss as revenues grew 14 percent from the first three months of the year.

The Elma-based maker of aircraft controls and knives reported net income of $447,000, or 20 cents per share, down from $504,000, or 22 cents per share, a year ago. However, that’s an improvement from a loss of $145,000, or 6 cents per share, in the first quarter.

Total revenues fell 7.2 percent from a year ago to $7.995 million from $8.067 million but increased from $6.99 million in the first quarter.

Servotronics has been struggling with lower sales and profits in its Consumer Products Group, which makes cutlery, bayonets, machetes, and pocket, combat, survival, sporting and agricultural knives for the commercial and government markets.

The company is spending $4 million dollars to upgrade and streamline its consumer products manufacturing process to make that business more competitive and profitable. That includes a 28,000-square-foot addition to its Cattaraugus County plant, as well as other capital improvements, the addition of new knife-making equipment and a reconfiguration of its work process. Servotronics received more than $700,000 in economic development help from the state and county on the project, which broke ground in May.