SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) March 30, 2004
SERVOTRONICS, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-7109 16-0837866
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
1110 Maple Street, Elma, New York 14059-0300
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(Address of Principal Executive Offices including zip code)
716-655-5990
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(Registrant's telephone number including area code)
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
Exhibit 99.1 Servotronics, Inc. Press Release issued on March 30, 2004.
ITEM 12. Results of Operations and Financial Condition
On March 30, 2004 Servotronics, Inc. issued a press release announcing
its financial results for the period ended December 31, 2003. The press release
is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 1, 2004
SERVOTRONICS, INC
By: /s/Lee D. Burns, Treasurer & CFO
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Lee D. Burns
Treasurer & CFO
Exhibit Index
Exhibit No. Description
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99.1 Servotronics, Inc. Press Release issued on March 30, 2004.
[GRAPHIC OMITTED][GRAPHIC OMITTED] Exhibit 99.1
1110 Maple Street P.O. Box 300 Elma, New York 14059-0300
716-655-5990 FAX 716-687-6012
March 30, 2004
SERVOTRONICS, INC. (AMEX- SVT)
ANNOUNCES YEAR END RESULTS
Elma, NY -- Servotronics, Inc. (Amex - SVT) reported a net income of
$254,000 (or $0.13 per share - Basic and Diluted) on revenues of $17,574,000 for
the year ended December 31, 2003 as compared to a net loss of $(229,000) (or
($0.12) per share Basic and Diluted) on revenues of $15,607,000 for the
comparable period ended December 31, 2002. The over $480,000 turnaround in year
to year net income is attributed to the successful replacement of lost business
resulting from 9/11, productivity improvements, cost containment activities and
production realizations of previous engineering/marketing efforts. Increased
shipments of control components for the Standard Missile program by the Advanced
Technology Group (ATG) and the initial production shipments by the Consumer
Products Group (CPG) for the new CPG designed U.S. Marine Corp's combination
combat knife/bayonet were specifically noted.
During the first quarter of 2004, Raytheon Missile Systems awarded
Servotronics a contract for the continued production of control components for
the Standard Missile program valued at over $2,700,000. Servotronics has also
entered into a three year agreement with another significant customer that has
an estimated sales value of $6 million dollars through 2006.
The Company's ability to counteract the adverse effects of 9/11 and to
grow sales revenues continues to be enhanced by its increased engineering and
marketing commitments and the maintenance of a strong backlog, cash flow and
balance sheet. The financial statements show working capital has increased to
$10,912,000, the current ratio improved to 6.69 to 1 and year to year cash flow
from operations increased approximately 46% to $1,353,000 in 2003 from $924,000
in 2002.
During 2003, the Company incurred significant front-end costs
associated with prototype, preproduction and start-up activities. While the
Company continues to incur such costs on an ongoing basis in order to support
and enhance the development of new products and applications for both the ATG
and CPG, the timing of such costs directly contributes to fluctuations in
operating results from period to period because these costs are expensed as
incurred and, as such, are not matched to their future revenues and benefits.
The Company is composed of two groups - the Advanced Technology Group
and the Consumer Products Group. The Advanced Technology Group 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.). This group is currently providing products for a significant
number of aerospace programs such as the F/A-18 E/F Super Hornet and other jet
fighters; the Bell/Boeing MV-22 Osprey Tiltrotor Joint Service Aircraft, the
Blackhawk, Apache, A-10 and other helicopters, the Standard Missile, numerous
business and regional jet aircraft, Raytheon's Hawker Horizon Aircraft, Embraer
TwinTurbo Fan aircraft, the Airbus 300 series and Boeing 700 series commercial
aircraft, DeHavilland DHC8-40 and various other programs.
Servotronics' Consumer Products Group 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.