Servotronics (SVT) Announces Strategic Vision to Maximize Long-Term Shareholder Value
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
Investing.com
Source link