Servotronics Announces Strategic Vision to Maximize Long-Term Shareholder Value
Servotronics, Inc. (NYSE American: SVT) has unveiled a strategic vision aimed at enhancing operational effectiveness and long-term shareholder value. Significant changes include the appointment of William F. Farrell, Jr. as CEO, three new independent board directors, and the elimination of the shareholder rights plan. The company is focusing on profitable growth, particularly in the recovering Commercial Aerospace market, with goals of mid-single-digit revenue growth and returning to pre-pandemic gross margins over the next five years. A culture of integrity and accountability is being fostered, supported by a refreshed leadership team.
- Appointment of William F. Farrell, Jr. as CEO to drive transformation.
- New independent board members enhancing governance.
- Focus on profitable growth in the recovering Commercial Aerospace market.
- Plans for mid-single-digit revenue growth aligned with industry projections.
- Return to pre-pandemic gross margins over the next five years.
- None.
-- Progress throughout 2022 Supports Focus on Core Business to Drive Long-term Profitable Growth --
Within the last twelve months the Company made considerable progress in revitalizing its leadership and culture. Steps included:
- Named
William F. Farrell , Jr. as Chief Executive Officer to lead a transformation and revitalization of the culture and business results. - Refreshed the Board of Directors with three new independent directors and a non-executive Chairman to enhance overall governance and bring fresh perspectives to leadership.
- Enhanced governance with the early elimination of the Company's shareholder rights plan for greater shareholder accountability.
- Developed an updated strategic plan, identifying tactics to guide the organization in realizing its potential.
- Strengthened the corporate leadership team, including the addition of a new Director of Human Resources and two executives to lead its Advanced Technology Group (ATG) and
Consumer Products Group (CPG) segments. - Announced the pursuit of strategic alternatives for CPG to align long-term strategic focus on
Servotronics' core aerospace business.
"Our team has made tremendous progress over the past year to revitalize our culture and define a long-term strategic vision for the business," said Chief Executive Officer
The core of
- Profitable Growth: Significant post-pandemic recovery is occurring in the
Commercial Aerospace market.Servotronics is well positioned with long-term contracts on major programs to capitalize on this growth. In addition, new products are being added to expand the Company's portfolio within these markets. Opportunities are also being explored in new markets that require the safety-critical products in whichServotronics excels. Each area for growth has also been evaluated to insure profit targets are being achieved. - People Centric Culture: The organization is building a culture of integrity and accountability. These improvements, and investments in our employees, are helping to attract, retain, and develop talent that is critical to
Servotronics's future. - Operational Excellence: The Company is focused on exceeding customers' quality and delivery expectations. Continuous improvement efforts are underway to improve manufacturing efficiency and ensure the safety of processes and products.
- Quality: With the safety critical applications of its products,
Servotronics continues to focus on quality and compliance with industry Zero-Defect initiatives.
In support of the implementation of the Company's new long-term strategic vision, the Leadership Team has developed a 5-year operating plan to drive profitable growth. By executing the strategic plan, targeted improvements in financial results include:
- Mid-single-digit revenue growth which is in line with, or slightly higher than, projected industry growth.
- A return to pre-pandemic gross margins, representing meaningful improvement in profitability over the 5-year time horizon.
Chief Executive Officer
ABOUT
The Company is composed of two groups – the Advanced Technology Group (ATG) and the
IMPORTANT INFORMATION
The Company will file a proxy statement with the
The Company, its directors and its executive officers may be deemed participants in the Company's solicitation of proxies from shareholders in connection with the matters to be considered at the upcoming annual meeting of shareholders. Information about the Company's directors and executive officers is set forth in the Company's preliminary proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the
FORWARD-LOOKING STATEMENTS
Certain of the statements contained in this press release should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," "would," "continue" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements about the Company's plans, objectives, expectations, intentions, estimates and strategies for the future and other statements that are not historical facts. These forward-looking statements are based on the Company's current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, among others, general economic and business conditions affecting the commercial aviation industry and other industries served by the Company, conditions affecting the Company's customers and suppliers, the introduction of new technologies and the impact of competitive products, 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 Company's ability to accurately align capacity with demand, the availability of financing and changes in interest rates, the outcome of pending and potential litigation, the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses' and governments' responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers' businesses, and on global supply chains, the ability of the Company to obtain and retain key executives and employees and the additional risks discussed in the Company's filings with the
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