Servotronics moving up
Servotronics said net income for the second quarter rose 34 percent despite a drop in revenues, as gains in its aircraft, missile and equipment control business outweighed declines in its cutlery, machetes and combat knives unit.
The Elma-based manufacturer reported profits of $588,000, or 27 cents per share, up from $439,000, or 21 cents per share, a year earlier. Total revenues fell 7.7 percent to $7.7 million, as volatility in delivery requirements for government procurements reduced sales in its Consumer Products Group.
The consumer group makes cutlery, bayonets, machetes and combat, survival, sporting, agricultural and pocket knives for commercial and government uses. The separate Advanced Technology Group makes servo control and other parts for aircraft, jet engines, missiles, and manufacturing and medical equipment.
Officials said in a press release that the company is pursuing “high-priority business development efforts” in both divisions, introducing new products or modifying existing ones “at an aggressive pace.” But they noted that development costs are incurred upfront, while sales don’t occur until much later.
Under a previously announced buyback program for up to 250,000 shares, the company had repurchased 194,357 shares as of June 30. It also paid a dividend of 15 cents per share on March 14.
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