WSI Industries

MINNEAPOLIS–(BUSINESS WIRE)–

WSI Industries, Inc. (Nasdaq: WSCI) today announced a new one year order from a major firearms manufacturer.  Benjamin Rashleger, president and chief executive officer, commented:  “As we previously disclosed, we have been actively pursuing new programs and customers.  We are pleased to announce positive results from that process as we have received a new one year order from a major firearms manufacturer.  This order does not require the purchase of any new equipment as it will consume available capacity in equipment that we had available due to the market cycles we’ve experienced in other areas of our business.  Not only does this new customer provide a further diversification to our market and customer base, it also illustrates the diversity of the applications in where our machining capabilities and capacity can be used.”  Rashleger concluded:  “We frequently communicate our efforts of pursuing new programs and customers as a top priority in our long-term strategy.  Although our business will always experience short-term fluctuations in demand by both individual customers and/or by specific industries, long term we remain confident in our plan by focusing on growth not only via our current customers, but by diversifying with new customers and industries as we’ve demonstrated with this award.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, firearms, marine, bioscience and the defense markets.

MINNEAPOLIS–(BUSINESS WIRE)–

WSI Industries, Inc. (WSCI) today reported sales for its fiscal 2013 second quarter ending February 24, 2013 of $7,178,000 versus the prior year amount of $7,021,000, or an increase of 2% over the prior year quarter. Year-to-date sales for the six months ended February 24, 2013 totaled $15,762,000, an increase of 21% versus $13,008,000 in the prior year. The Company reported net income of $56,000 or $.02 per diluted share for the fiscal 2013 second quarter which was down from the prior year quarter amount of $171,000 or $.06 per diluted share. Year-to-date income for the first two quarters rose with the Company reporting earnings of $487,000 or $.17 per diluted share versus $276,000 or $.10 per diluted share in the prior year which represented an increase of 77%.

Benjamin Rashleger, president and chief executive officer, commented: “Our fiscal 2013 second quarter results reflected a softening in our energy business that, in combination with the typical seasonality of our second quarter, led to a lower bottom line net income versus the prior year quarter. While our sales increased quarter over quarter, our earnings were negatively impacted mainly by our product mix, and the effect this mix had on our shop efficiency. From a year-to-date perspective, our net income is still up with our fiscal 2013 results at $.17 per diluted share versus the prior year of $.10 per diluted share.” Rashleger continued: “We expect our fiscal third and fourth quarters to show improvement over our second quarter, however, we anticipate the full year fiscal 2013 results will fall short of the fiscal 2012 figures. We are optimistic that over time we will see a rebound in our energy business and that it will remain a key part of our business portfolio.”

Rashleger elaborated: “We remain confident about the core of our business. Our powersports business continues to grow and also to provide new programs. We are in the process of purchasing multiple machines to support the growth in both existing and new programs. In addition, our aerospace business has increased in fiscal 2013 and as we pursue our AS9100 quality certification this year, we are hopeful that it will continue to expand. Our efforts at driving new business remain strong, and the level of open quotes for potential new programs and customers is excellent.” Rashleger concluded: “Our new 47,000 square foot manufacturing space addition is nearly complete and we have begun occupying and utilizing the added space. We view the new addition as an excellent market advantage as it will allow us to approach prospective customers with larger outsourcing needs with a readily available site. We believe we are well positioned to capitalize on further growth opportunities.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable April 16, 2013 to holders of record on April 2, 2013.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

WSI Industries, Inc. (WSCI) today reported sales for its fiscal 2013 first quarter ending November 25, 2012 of $8,584,000, a 43% increase versus the prior year amount of $5,987,000. Net income for the fiscal 2013 first quarter was $431,000 or $.15 per diluted share which represented a 310% increase over the prior year quarter of $105,000 or $.04 per diluted share.

Benjamin Rashleger, president and chief executive officer, commented: “We began fiscal 2013 with significant momentum carried over from the last two quarters of fiscal 2012. With our fiscal 2013 first quarter, we have completed a third consecutive quarter where our quarterly sales have increased by 38% or more year over year.” Rashleger further stated: “While we have experienced some significant improvements over the past few quarters in our year over year earnings, we have experienced some softening in our energy business, and expect to see some near term impact due to this softening, especially when considering that our second quarter historically is our slowest quarter for the year due to seasonal market conditions with some of our key customers. That said, we continue to have confidence in our business for the remainder of our fiscal 2013 and believe our team has demonstrated the ability to identify and deliver profitable growth over the long term.” Rashleger concluded: “We are also pleased to report that our building expansion is going as planned and we look forward to utilizing the space in the coming months. We view the new addition as an excellent market advantage as it will allow us to approach prospective customers with larger outsourcing needs with a readily available site. We are currently anticipating that we will consume one-third of the new space almost immediately after it is completed, and it is a critical component of our ability to continue to expand and develop our business.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable January 31, 2013 to holders of record on January 17, 2013.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)–

WSI Industries, Inc. (WSCI) today reported sales for the full year fiscal 2012 ending August 26, 2012 of $32,456,000, an increase of 30% over the prior year’s sales of $24,963,000. The Company also reported an increase of 64% in full year net income to $1,473,000 or $.51 per diluted share versus $899,000 or $.31 per diluted share in fiscal 2011.

Fiscal fourth quarter sales of $9,965,000 were an increase of 38% over the prior year’s quarter of $7,221,000. The Company’s net income in the current year’s fourth quarter of $600,000 or $.21 per diluted share was an increase of 76% over the prior year’s quarter of $340,000 or $.12 per diluted share.

Benjamin Rashleger, president and chief executive officer, commented: “A year ago we reported that our fiscal 2011 revenue was up 33% and net income was up 41% and that we expected fiscal 2012 to be even better. We are pleased to report that our fiscal 2012 sales increase was almost equivalent to the fiscal 2011 increase, and that our net earnings increase accelerated to a 64% improvement over the prior year.” He noted that in fiscal 2012 the Company accomplished the following:

• Increased sales and net income by 30% and 64%, respectively, over the prior year.
• Increased working capital by $1.1 million and maintained the Company’s solid financial position.
• Increased our energy business revenues by 78% over the prior year.
• Increased revenues in our recreational vehicle market by 19% over the prior year.
• Invested $3.7 million in property and equipment during fiscal 2012.
• Invested in our human resource capital by increasing our headcount by 17% in the past year.
• Increased our share price by 35% in fiscal 2012, which followed a 61% increase in share price in fiscal 2011 and a 38% increase in fiscal 2010.
• Paid a cash dividend at an annualized rate of $.16 per share.
• Broke ground on a new $3.5 million, 47,000 square foot expansion that will double the Company’s manufacturing space.
• Signed agreements with our largest customer that extended through 2014 our agreement to provide parts on three different programs and also awarded us a new program that will commence production in the summer of 2013.
• Signed agreements with two existing aerospace customers, both of which run through 2017.

Rashleger continued: “We are pleased to report on the continued success of WSI in fiscal 2012. In the last two years, we have increased sales by 72% and net earnings by 131%. We have diversified our customer and industry base by adding business in our energy and aerospace markets. We have aligned our investment in equipment and employees to support our current and future growth. As we announced in August 2012, we are expanding our existing facilities by embarking on a $3.5 million addition to our building that will double our size and will allow us to continue to grow. We are excited about our future prospects, our customer’s success and the potential of the markets we serve.” Rashleger concluded: “We anticipate that fiscal 2013 will again show improvements in both sales and earnings over fiscal 2012. To accomplish this, we must remain focused on execution while providing the best value for our customers and building a world class contract manufacturing business.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable November 15, 2012 to holders of record on November 1, 2012.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)–

WSI Industries, Inc. (WSCI) today reported that it had been awarded a new five year program with an existing customer. The Company also reported that an existing program with the same customer was also extended to the same term which runs through 2017 and will provide additional revenue over the five year period.

Benjamin Rashleger, president and chief executive officer, commented: “We are pleased to report a new multi-year program with one of our existing aerospace customers. In awarding the new program as well as lengthening our existing agreement with them, our customer has shown its confidence in WSI to provide high tolerance machined parts to the aerospace industry. While the aerospace industry represents a smaller percentage of our overall business, we hope to grow this segment in the coming years.” Rashleger continued: “We believe the aerospace industry will be a strong segment over the next decade, and in order to increase our ability to further penetrate this market, we have commenced on a plan to obtain an AS 9100 quality certification. The aerospace industry as a whole is driven to the more stringent AS 9100 quality standards, and we have made it our goal to obtain this certification by the middle of calendar year 2013. Obtaining this certification will complement our existing quality system, and further expand our ability to pursue more aerospace opportunities and will continue our strategy of diversifying our business in both the customers and industries we serve.”

The Company also announced today that it has renewed its ISO 9001 Certification, affirming that the company’s quality management system meets the strict qualifications for the globally accepted ISO standard.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)–

WSI Industries, Inc. (WSCI) announced today that they had broken ground on their plant expansion. In a ceremony attended by city and civic leaders as well as all WSI employees, the Company broke ground on a 47,000 square foot expansion that will double the size of their manufacturing facility. Benjamin Rashleger, president and chief executive officer, commented: “We are pleased to announce that our building addition is underway. Anyone who visits our facility understands that we are currently cramped for space and that we need to expand to not only better serve our existing customers but also to set the stage for new business growth. We view the new addition as an excellent market advantage as it will allow us to approach prospective customers with larger outsourcing needs with a readily available site. When we combine the facility with the financial capability to quickly add new equipment, we expect to have a competitive edge in obtaining new business.” Rashleger concluded: “We anticipate having walls and a roof in place before the Minnesota winter sets in and are planning on being able to utilize the new space early in calendar year 2013.” The Company expects the addition to cost approximately $3.5 million. Funding for the expansion will be from available cash and debt and the company believes the construction process should have minimal impact on their current manufacturing processes.

The Company also announced that it expects to release fiscal 2012 fourth quarter and full year earnings after market close on October 17, 2012.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

Contact:WSI Industries, Inc.

Benjamin Rashleger (President & CEO), 763-295-9202
or
Paul D. Sheely (CFO), 763-295-9202

WSI Industries, Inc. (WSCI) today announced a major expansion to their Monticello, MN facility due to continued strong demand for their contract manufacturing services and to accommodate for future business growth. The planned 47,000 square foot expansion will double the existing manufacturing space with construction beginning in August 2012. They anticipate the expansion to be completed and available for utilization near the beginning of the 2013 calendar year. Funding for the expansion will be from available cash and debt. They anticipate that the construction work will have a minimal impact on their current manufacturing processes.

Benjamin Rashleger, president and chief executive officer, commented: “This past quarter we announced we that we had achieved a decade high sales level, exceeding the previous year’s quarter by 45%. Over the past three fiscal years, WSI has experienced increasing sales with growth from $18.8M in fiscal 2010, to $25.0M in fiscal 2011, to our current fiscal year, which ends on August 26^th, 2012, where we expect to continue the growth and exceed $31.0M in sales. At the same time, we have increased our headcount from 54 employees in 2009 to our current headcount of 91 employees.” Rashleger continued: “With the success we’ve had in diversifying our business with new customers and markets, as well as our current customers’ increasing demands, we have begun to stretch the capacity of our current facility, and are in need of additional manufacturing space. This building addition will double our manufacturing space and capacity, and give us substantial room for continued growth of our business – with both our current and new customers. This expansion illustrates the confidence we have in our current customers and their future success, as well as our ability to continue to attract and obtain new business in the contract manufacturing market. We believe the additional space provided by the expansion will provide us the opportunity to also expand the capabilities and services we can offer to our customers, in addition to the added capacity, which will also help to drive the expansion of the business by attracting new customers and programs.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

June 19, 2012—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2012 third quarter ending May 27, 2012 of $9,483,000 versus the prior year amount of $6,532,000, or an increase of 45% over the prior year quarter.  Year-to-date sales for the nine months ended May 27, 2012 totaled $22,491,000, an increase of 27% versus $17,742,000 in the prior year.

The Company also reported net income of $598,000 or $.21 per diluted share for the fiscal 2012 third quarter which was an increase of 51% over the prior year quarter amount of $397,000 or $.14 per diluted share.  Year-to-date income also rose with the Company reporting fiscal earnings of $874,000 or $.30 per diluted share versus $559,000 or $.19 per diluted share in the prior year which represented an increase of 56%.

Benjamin Rashleger, president and chief executive officer, commented:  “We are very pleased to report on our fiscal 2012 third quarter results that have both sales and income at their highest levels in the last decade.  Not only do our fiscal third quarter sales represent an increase of 45% over the prior year quarter, they also exceed any quarter in the last 10 years by over $2 million.  Our bottom line profit results also improved with the fiscal 2012 third quarter at $.21 per diluted share equating to a 51% increase over the prior year quarter, which is also at the highest level in the last 10 years.”  Rashleger continued:  “Our sales growth came from both of our core businesses of recreational vehicles and energy.  Our recreational vehicle revenues increased by 38% over the prior year third quarter while our energy business increased by 91%.  In particular, our shale fracturing business sales increased a little under four fold in the fiscal 2012 third quarter over the prior year quarter”  Rashleger concluded:  “We remain very positive about our business as we wrap up fiscal 2012 and are optimistic that fiscal 2013 will show continued improvements.  Our customers are clear leaders in their industries, and we have made significant investments in equipment and personnel over the past couple of years to support their growth as we increase our business with them.  We look forward to building on our success with continued expansion of our business and by staying focused on the execution of our strategy of partnering with key leaders across industries, and providing them with a superior value and the highest quality service.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share.  The dividend will be payable July 19, 2012 to holders of record on July 5, 2012.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

#          #          #

For additional information:

Benjamin Rashleger (President & CEO) or Paul D. Sheely (CFO)

763-295-9202

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI) today reported sales for its fiscal 2012 second quarter ending February 26, 2012 of $7,021,000 versus the prior year amount of $5,682,000, or an increase of 24% over the prior year quarter. Year-to-date sales for the six months ended February 26, 2012 totaled $13,008,000, an increase of 16% versus $11,210,000 in the prior year. The Company reported net income of $171,000 or $.06 per diluted share for the fiscal 2012 second quarter which was an increase of 45% over the prior year quarter amount of $118,000. Year-to-date income also rose with the Company reporting fiscal earnings of $276,000 or $.10 per diluted share versus $162,000 or $.06 per diluted share in the prior year which represented an increase of 70%.

Benjamin Rashleger, president and chief executive officer, commented: “We are pleased to report increases in both our top line sales and bottom line profit in our fiscal 2012 second quarter and year-to-date financials. This is our seventh consecutive quarter of year over year quarterly sales growth.” Rashleger continued: “Our sales growth has been supported by increases in both our recreational vehicle business and our energy business. We continue to experience growth in our existing recreational vehicle lines, and at the same time we are also expanding our scope by adding newly awarded programs and product lines that will benefit us in the coming years. Our energy business has also grown with the increase in that market coming primarily from our product lines in the shale fracturing business.” Rashleger concluded: “As we have stated previously, we continue to invest in both capital equipment as well as adding new employees. These investments necessitate up-front costs and inefficiencies that have impacted our income statement. However, we reiterate our previous guidance that we expect our full year fiscal 2012 to exceed the prior year in both sales and net income.”

The Company also announced that it has signed a five year agreement with an existing aerospace customer to continue to provide them parts. Rashleger commented: “This agreement provides further solidification of our business foundation, as well as providing for industry and customer diversification.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable April 18, 2012 to holders of record on April 4, 2012.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2012 first quarter ending November 27, 2011 of $5,987,000, an 8.3% increase versus the prior year amount of $5,528,000. Net income for the fiscal 2012 first quarter was $105,000 or $.04 per diluted share which represented a 137% increase over the prior year quarter of $44,000 or $.02 per diluted share.

Benjamin Rashleger, president and chief executive officer, commented: “We experienced a strong year over year bottom line increase in our fiscal 2012 first quarter. Sales in all of our major industries remained strong.” Rashleger further stated: “We previously announced new programs in our energy business. During our fiscal 2012 first quarter, we experienced our first deliveries in most of these new programs.” Rashleger concluded: “We expended significant resources in starting up these new programs in our fiscal 2012 first quarter. With most of these programs out of start-up and into production mode, we remain optimistic about our fiscal 2012 and anticipate that both our sales and earnings will continue to show an improvement over the full year fiscal 2011 results.”

Benjamin Rashleger also commented on the retirement of Michael Pudil who had served as the Company’s chief executive officer for 18 years. Rashleger said: “WSI and all of its employees wish to thank Mike for his leadership for all of these years. It is with a sense of sadness that we see Mike retire, but we are pleased that he will remain on the Board of Directors and look forward to his continued guidance for years to come.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable February 1, 2012 to holders of record on January 18, 2012.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

Benjamin Rashleger (President & CEO)
or Paul D. Sheely (CFO)
763-295-9202

WSI Industries, Inc.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq: WSCI - News) today provided an update on its recreational vehicle business. The Company announced that it had reached a three-year agreement to provide engine components to an existing customer. The Company also announced that the customer had awarded a new program to the Company.

President and COO Benjamin Rashleger commented: “We are pleased to announce positive news in our recreational vehicle market. Related to existing business, we recently signed an agreement with our primary customer in this market to continue to provide them with parts for three different programs through the end of calendar 2014. This agreement demonstrates WSI’s exceptional performance and capabilities, and also provides support for WSI to invest in new specialized equipment and automation that will increase manufacturing efficiencies and capabilities, further expanding the value we can provide to our customer.” Rashleger continued: “We are also delighted to announce that this same customer awarded a new program in the recreational vehicle market. This program, which we anticipate will commence production in the summer of 2013, further solidifies the Company’s position in the marketplace as a preeminent leader in small engine component machining.” Rashleger concluded: “With the three year extension on programs that represent a significant share of our existing recreational vehicle business combined with the award of a new program, we believe that the Company’s business in the recreational vehicle market will be stable for the foreseeable future.”

The Company also announced that it has been featured on the cover of the metalworking industry’s premier publication – Modern Machine Shop, in an issue that also includes a feature story about WSI. The main topic of the article was program management and production, a key contributor towards WSI’s success.

Finally, WSI Industries stated that it expects to release its fiscal 2012 first quarter financial results on January 4^th, 2012 prior to its Annual Meeting that occurs on that date at 1:00 Central time.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics, aerospace and defense, energy, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

Contact:
WSI Industries, Inc.
Michael J. Pudil (CEO), Benjamin Rashleger (President & COO) or Paul D. Sheely (CFO)
763/295-9202

WSI Industries has been featured in the metalworking industry’s premier publication – Modern Machine Shop. The main topic of the article was program management and production, a key contributor towards WSI’s success.

The article can be read here: http://www.mmsonline.com/articles/delivering-value-in-program-production

Sales up 33% – Net Income up 41%

Benjamin Rashleger Appointed to Board

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for the full year fiscal 2011 of $24,963,000, an increase of 33% over the prior year’s sales of $18,827,000. The Company also reported an increase of 41% in full year net income to $899,000 or $.31 per diluted share versus $637,000 or $.23 per diluted share in fiscal 2010.

Fiscal fourth quarter sales of $7,221,000 were an increase of 23% over the prior year’s quarter of $5,856,000. The Company’s net income in the current year’s fourth quarter of $340,000 or $.12 per diluted share was equivalent to the prior year’s fourth quarter of $348,000 or $.12 per diluted share.

Benjamin Rashleger, president and chief operating officer, commented: “A year ago we reported positive results for our fiscal 2010, and that we believed our fiscal 2011 would be better.” He noted that in fiscal 2011 the Company accomplished the following:

• Reinstated the dividend program at an annualized rate of $.16 per share.
• Increased sales and net income by 33% and 41%, respectively, over the prior year.
• Increased cash balances and maintained the Company’s solid financial position.
• Increased our presence in our energy business with a new customer that has awarded us several programs related to the shale fracturing segment.
• Added two new product lines in our recreational vehicle market which were an element of a year over year sales increase of 39% in this business.
• Invested $1.7 million in property and equipment during fiscal 2011 with an additional investment of $1.4 million occurring in the first quarter of fiscal 2012.
• Invested in our human resource capital by increasing our headcount by one-third in the past year.
• Increased our share price by 61% in fiscal 2011, which followed a 38% increase in share price in fiscal 2010.

Rashleger continued: “WSI has had several exciting recent developments. We announced last month we have been able to diversify our energy business, as well as our overall industry balance, in addition to expanding our overall business. We have continued to invest in our Company in order to support our new and existing customers with additional capacity, expansion of our capabilities, and key additions to our team, while still being able to improve and maintain overall profit, generate cash flow from operations, and reward our shareholders with a quarterly dividend.” Rashleger concluded: “We will continue to look to capture new opportunities and further diversify our industry and customer exposure to ensure our business will remain secure. We are fortunate to have additional opportunities in front of us that will help us meet these goals. We must also remain focused on execution while providing the best value for our customers. We remain confident that fiscal 2012 will build on our success of fiscal 2011, and we will continue to remain focused on building a world class contract manufacturing business.”

Michael J. Pudil, Chief Executive Officer, stated: “The Board of Directors is pleased to announce that Benjamin Rashleger will be promoted to the CEO position effective January 1, 2012 and has been appointed as a Director on the WSI Board effective the date of this press release.” As planned, Michael Pudil will be retiring as CEO of WSI effective the end of this calendar year. As previously announced, the Company had the opportunity to proactively implement an orderly succession plan over the last two years, during which time Benjamin Rashleger has been the President and Chief Operating Officer. Michael Pudil further commented: “Benjamin has done a tremendous job for WSI. He has been the driving force in the Company that has resulted in a 33 percent growth in revenue and a 41% growth in earnings in the last year alone. The entire Board has tremendous confidence in Benjamin’s ability to lead the WSI growth strategy that takes full advantage of our established 60 year reputation in the contract machining industry.” Pudil further added: “I have been honored to serve WSI as the Chief Executive Officer over the last 18 years. My efforts have been to reach for a level of excellence in contract manufacturing services that exceeded expectations in customer, employee, and shareholder satisfaction. I look forward to the opportunity to continue to serve the interests of the WSI shareholders in my role as a member of the Board.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable November 17, 2011 to holders of record on November 3, 2011.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI - News) today provided an update on its current business. Highlights included:

• Diversification in our energy business with the addition of two customers.
• An initial $5 million sales order for the shale fracturing segment.
• Capital equipment additions totaling $1.25 million.
• Continued strength in WSI’s other key markets.

President and COO Benjamin Rashleger commented: “We are pleased to be able to provide a positive update on our overall business. We had previously announced a new customer in the energy sector, of which our initial focus was with two different programs. With one of these programs, we have recently received a $5 million order, with deliveries starting immediately. In addition, they have also expanded their business with us to include several additional complex tight tolerance parts, of which we are beginning to ramp up production. We are very excited about the overall opportunity this customer brings to WSI. This customer is a leader in providing solutions to the shale fracturing industry. In addition, we have received an order from a former energy customer that involves parts for the well drilling segment of the oil industry. The addition of the programs in the shale fracturing field and the well drilling segment provides diversity to our energy business. The commencement of business with these customers has expanded our focus in the energy field to include drilling rigs, blow-out protection, and well fracturing.”

Rashleger continued: “With the growth in our energy business, we have also purchased and completed the installation of approximately $1.25 million in new equipment. These equipment purchases are a result of both new orders as well as providing additional capacity for current and future business. In addition, one of the new pieces of equipment provides additional machining technologies to WSI, further expanding the capabilities and services we offer to our customers. Along with the equipment purchases, we continue to appropriately add staff to support our business demands.” Rashleger further stated: “With this update we don’t want to overlook our other markets, including our recreational vehicle market, which remains strong. We have recently shipped our first product to our largest customer’s new facility in Mexico, while we simultaneously continue to source some of our components from Asia. WSI is committed to being a global organization in order to provide the best value for our customers.”

Rashleger concluded: “With today’s announcements, we feel the combination of both our existing and new business opportunities provide a favorable outlook for our 2012 fiscal year.”

WSI Industries also announced that it expects to release its fiscal 2011 fourth quarter and year-to-date financial results after the market close on October 20, 2011.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics, aerospace and defense, energy, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

Sales up 40% & Earnings up 151%

Press Release Source: WSI Industries, Inc. On Tuesday June 21, 2011, 5:00 pm

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI - News) today reported operating results for the fiscal 2011 third quarter ended May 29, 2011.

• Net sales of $6,532,000 were up 40% from $4,657,000 in the year earlier period. Year-to-date sales of $17,742,000 were up 37% over the prior year-to-date period.
• Net income for the fiscal 2011 third quarter rose to $397,000 or $.14 per diluted share, an increase of 151% over the prior year’s net income of $158,000 or $.06 per diluted share Year-to-date net income increased to $559,000 or $.19 per diluted share versus the prior year-to-date period of $290,000 or $.10 per diluted share.

Michael J. Pudil, chief executive officer, commented: “We are happy to report significant improvements in both our top line sales and bottom line net income results in our fiscal 2011 third quarter. Our sales growth came from all portions of our business with both our recreational vehicle market as well as our energy business reporting solid revenue increases.”

President and COO Benjamin Rashleger stated: “During our fiscal 2011 third quarter, we made significant improvements in our gross margins with respect to our newer programs. The start-up costs that we incurred in the first two quarters of fiscal 2011 are now behind us.” Rashleger continued: “These improvements, as well as the continued solid performance in the remainder of our business propelled our earnings improvement in the third quarter.” Rashleger concluded: “We remain confident with our overall prospects going forward. The combination of our current base of business, as well as potential new opportunities bode well for our future success. We feel that the revenue and earnings improvement that we realized during the fiscal 2011 third quarter was a result of the investments we have made in personnel and equipment, and it demonstrates that we can continue to be successful as we grow into the future.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. As mentioned in prior quarters, the Company believes that a consistent dividend program is a further sign of WSI’s financial strength and improved business outlook. The dividend will be payable July 19, 2011 to holders of record on July 5, 2011.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics, aerospace and defense, energy, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

WSI Industries has announced that it has received an award from NASDAQ OMX to mark the 40^th anniversary of its listing on the NASDAQ exchange.  WSI was one of the approximately 2,500 original listing companies on NASDAQ when NASDAQ started the electronic trading of over the counter stocks on February 8, 1971.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI – News) today reported sales for its fiscal 2011 second quarter ending February 27, 2011 of $5,682,000 versus the prior year amount of $4,060,000, or an increase of 40% over the prior year quarter. Year-to-date sales for the six months ended February 27, 2011 totaled $11,210,000, an increase of 35% versus $8,314,000 in the prior year. The Company recorded net income of $118,000 or $.04 per diluted share in the fiscal 2011 second quarter as compared to net income of $28,000 or $.01 per diluted share in the prior year quarter. For the year-to-date period ended February 27, 2011 the Company’s net income totaled $162,000 or $.06 per diluted share as opposed to net income of $132,000 or $.05 per diluted share in the prior year-to-date period.

Michael J. Pudil, chief executive officer, commented: “We are pleased by our significant top line revenue increase in the fiscal 2011 second quarter. Our sales improvement came in large part from increases in our energy business as well as our ATV and motorcycle business. Our bottom line results are also improved from the second quarter a year ago.” Pudil concluded: “The ATV and motorcycle segment remains a dynamic business for WSI. In coming quarters we will be increasing volume for two new product lines of our ATV business while at the same time phasing out a part of our motorcycle business. While the long-term impact of these program changes is anticipated to be positive, there is a potential of some near-term downside in the overall ATV and motorcycle business.”

Benjamin Rashleger, president and chief operating officer, added: “We are confident about the remainder of fiscal 2011. As we have previously announced, we have successfully landed new programs with new customers. In addition, we have excellent prospects for new customers and new business and we are hopeful that we will continue to add to our success.” Rashleger concluded: “In recent months we have invested heavily in both equipment and manpower at WSI. Our investments include over $1.2 million in capital equipment as well as increasing our workforce by 40%. We are optimistic that these investments will translate into bottom line results.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. As mentioned last quarter, the Company believes that a consistent dividend program is a further sign of WSI’s financial strength and improved business outlook. The dividend will be payable April 20, 2011 to holders of record on April 6, 2011.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for its fiscal 2011 first quarter ending November 28, 2010 of $5,528,000, a 29.9% increase versus the prior year amount of $4,254,000. Net income for the fiscal 2011 first quarter was $69,000 or $.02 per diluted share versus $163,000 or $.04 per diluted share in the prior year first quarter.

Michael J. Pudil, chief executive officer, commented: “In its fiscal 2011 first quarter, WSI experienced a strong sales increase of almost 30% led in large measure by our ATV and motorcycle markets.” Pudil continued: “While we were profitable during the quarter with earnings at $.02 per diluted share, our results were negatively impacted by start-up costs with new customers.” Pudil concluded: “While our outlook for fiscal 2011 is somewhat tempered by the results in our fiscal 2011 first quarter, we remain optimistic about the balance of the fiscal year.”

Benjamin Rashleger, president and chief operating officer, added: “In prior communications we announced new programs in the energy sector as well as with a major defense contractor. While the roll-out of these programs is slower than we had anticipated, we are optimistic of their long-term positive impact on WSI. We consider the start-up costs with these customers to be investments that will provide future returns.” Rashleger concluded: “We are also pleased to report additional investments in capital equipment were made during the quarter that not only increased our capacities but further expanded our machining capabilities.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. As mentioned last quarter, the Company believes that a consistent dividend program is a further sign of WSI’s financial strength and improved business outlook. The dividend will be payable February 2, 2011 to holders of record on January 19, 2011.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI - News) today reported sales for the fourth quarter ended August 29, 2010, of $5,856,000 versus the prior year fiscal 2009 fourth quarter of $3,993,000, or an increase of 47%. The Company’s net income in the current year’s fourth quarter was $348,000 or $.12 per diluted share as compared to the prior year’s quarter of $35,000 or $.01 per diluted share.

For the full year, sales for fiscal 2010 were $18,827,000, a slight increase over the prior year amount of $18,766,000. For fiscal 2010 the Company experienced net income of $637,000 or $.23 per diluted share compared to the prior year’s net loss of $159,000 or $.06 loss per diluted share.

Michael J. Pudil, chief executive officer, commented: “We are pleased to report a dramatic increase in sales and earnings in our fiscal 2010 fourth quarter as compared to the same period last year. WSI experienced a surge in activity in our fourth quarter, and due to the steps we have taken to streamline our costs and improve efficiencies, we were able to capitalize on the increase in activity. Looking forward, we anticipate that overall fiscal 2011 will also show improvement from fiscal 2010.”

The Company also announced today that its Board of Directors has declared a quarterly dividend of $.04 per share. The dividend will be payable November 17, 2010 to holders of record on November 3, 2010. Pudil commented: “We are also pleased to announce the reinstatement of the dividend program that was suspended in January 2009 because of uncertain economic conditions. We believe that a consistent dividend program is a further sign of WSI’s financial strength and improved business outlook. It is our objective to reward our shareholders with cash dividends as well as increasing share appreciation while, at the same time, maintaining our strong financial position. We believe the dividend program helps us accomplish these goals.”

Benjamin Rashleger, president and chief operating officer, added “We are beginning to capitalize on our new business efforts over the past year. We announced in July that we were awarded an assembly program for a major defense contractor. We recently have successfully completed initial runs for two additional new customers, and have been qualified and approved for multiple new programs with each. One of these new customers will expand our penetration into the energy sector, while the other is in an entirely new market for WSI. In addition, we also have several opportunities that we are working on and hope to expand on the recent success of our new business efforts and the securing of additional new business for WSI.” Rashleger continued “To support both our new customers and increases in business with our current customers we are investing in our business in both capital equipment and human resources.” Rashleger concluded “We must remain focused on our ability to execute. We are making the necessary capital and personnel investments to best support our current customer demands, as well as making adjustments in our organization to be able to support future customers and their demands.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)– WSI Industries, Inc. (Nasdaq:WSCI - News) today reported that the Board of Directors has appointed James D. Hartman to the WSI Board. Mr. Hartman has been a director of NVE Corporation since 2006. He was Chairman of Enpath Medical, Inc. from 2003 until it was acquired by Greatbatch, Inc. in 2007. From 1991 until 2007, Mr. Hartman held a variety of positions with Enpath and its predecessor company, including Chief Executive Officer. Enpath was publicly traded from its initial public stock offering in 1991 until it was acquired by Greatbatch. Mr. Hartman holds an accounting degree from the University of Wisconsin-Eau Claire and an MBA from the University of St. Thomas.

Michael J. Pudil, Chairman of the Board and Chief Executive Officer, commented: “We are pleased to have Jim join the WSI Board. His nearly 20 years experience as a director and executive officer of a publicly traded company and his financial expertise more than qualify him to serve as a director for WSI.”

WSI also announced that two of the current Directors, Eugene Mora and Paul Baszucki will not be running for re-election next year due to their retirement. Pudil further commented: “We would like to take the opportunity to thank both for their dedicated and outstanding service as members of WSI’s Board of Directors. Gene, who has served 25 years and Paul, who has served 22 years, have provided insight and business advice to management and the Board of Directors, and have consistently urged action that is in the best interest of the corporation and its shareholders.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

MINNEAPOLIS–(BUSINESS WIRE)–WSI Industries, Inc. (Nasdaq:WSCI - News) announced today that it has received ISO 9001:2008 Certification, affirming that the company’s quality management system meets the strict qualifications for the globally accepted ISO standard. WSI’s quality system was assessed by SGS, a global leader in the ISO certification industry. WSI also has announced their recent launch of a completely redesigned web site.

Benjamin Rashleger, president and chief operations officer, commented: “This is a great accomplishment for our employees. The move to ISO 9001:2008 further demonstrates WSI’s emphasis on organizational quality, and extending that quality to our customers. ” Rashleger went on to say: “ISO 9001:2008 certification is critical in serving our customers, but we also feel that it will provide WSI a competitive advantage in attracting future new business.” Rashleger continued “In addition to announcing our ISO certification, WSI also is excited to announce the launch of our entirely redesigned web site. The new site brings together months of efforts in identifying our core brand, and how we can most effectively communicate that brand to the market. We feel the new site does an outstanding job of doing this, as well as providing a better method of communicating the value we bring to potential customers.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics, aerospace and defense, energy, recreational vehicles, computers, small engines, marine, bioscience and instrumentation.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

WSI Industries, Inc. today reported the securing of a manufacturing and assembly program with a new customer. President and COO Benjamin Rashleger announced that a major defense and aerospace contractor has selected WSI Industries to manufacture a newly developed, complete turn-key assembly for them. Rashleger said: “We are very pleased to announce a multi-year agreement for WSI to provide manufacturing and assembly services for this entirely new program, as well as the beginning of a new relationship for WSI with a highly recognized fortune 100 company.” Rashleger continued: “We believe that the selection of WSI to manufacture the assembly for this exciting new program reflects positively on our manufacturing and assembly capabilities and our ability to provide a complete turn-key product to our customers. It also reinforces and rewards our efforts and focus on growing our business, expanding our market and diversifying our customer base.”

WSI expects to begin shipping assemblies to the customer beginning in the fiscal 2010 fourth quarter ending August 29, 2010.

WSI Industries, Inc. today reported net sales of $4,657,000 for the third quarter of fiscal 2010 ended May 30, 2010, which were comparable to the prior fiscal 2009 third quarter of $4,736,000. The Company’s net income improved significantly to $158,000 or $.06 per diluted share versus the prior year quarter of $12,000 or break-even per diluted share. Year-to-date sales in fiscal 2010 were $12,970,000 as compared to $14,773,000 a year ago. Year-to-date diluted earnings per share for fiscal 2010 were at $.10 as compared to a loss of $.07 in the prior year.

Michael J. Pudil, chief executive officer, commented: “As reflected in our fiscal 2010 third quarter results, we have continued our steady growth out of the recession with our earnings. At $.06 per diluted share, our third quarter net income is at its highest level in 7 quarters.” Pudil continued: “Our ATV and motorcycle markets continue to lead the way with an increase in sales over the prior year quarter. In addition, and for the first time in several quarters, we have seen simultaneous growth in other parts of our core business as we experienced sales increases in our aerospace, defense and biosciences markets over the prior year fiscal third quarter. We anticipate that our fiscal 2010 fourth quarter will show additional improvements.”

President and COO Benjamin Rashleger stated: “We are very pleased with our results for the quarter considering the continued suppression of the manufacturing segment. These results again show WSI’s success in managing our business and costs in parallel with our current business levels. We have begun to see some industries show signs of improvement in their demand, and we will continue to cautiously control our expenses and make the necessary investments and staffing adjustments as we find them necessary to support our customer’s needs.” Rashleger continued: “We are finalizing our branding and marketing strategy, as well as our web site redesign project, and we are optimistic that these tools will provide support to our goal of expanding and diversifying our customer base. We are excited about the opportunities we are working on, and we continue to remain focused on managing our business to provide the highest value of service to our customers – existing and new.”

WSI Industries, Inc. today reported sales for its fiscal 2010 second quarter ending February 28, 2010 of $4,060,000 versus the prior year amount of $4,001,000. Year-to-date sales for the six months ended February 28, 2010 totaled $8,314,000 versus $10,037,000 in the prior year. The Company recorded net income of $28,000 or $.01 per diluted share in the fiscal 2010 second quarter as compared to a net loss of $307,000 or $.11 per diluted share in the prior year quarter. For the year-to-date period ended February 28, 2010 the Company’s net income totaled $132,000 or $.05 per diluted share as opposed to a net loss of $206,000 or $.07 per diluted share in the prior year-to-date period.

Michael J. Pudil, chief executive officer, commented: “We are encouraged by our bottom line results in our fiscal 2010 second quarter. Our net income of $28,000 versus the prior year loss on similar sales volumes can be attributed in part to the steps we have taken over the past year to streamline our cost structure.” Pudil went on to say: “Our overall sales remain mixed. We had some encouraging signs in our fiscal second quarter with our ATV and Motorcycle business which experienced an increase in sales over the prior year quarter, but our total sales were hampered by lower sales from our energy sector.”

Benjamin Rashleger, president and chief operating officer, added: “We continue to remain focused on executing our strategy to expand our business. We recently announced the addition of Lars Ossmo as a business development manager with our sales and marketing group. Mr. Ossmo’s primary responsibility will be to find new sales opportunities for WSI and, with his addition, we now have five individuals on our sales and business management team. We are confident that we have the right balance of people to best allow us to focus on generating new opportunities for WSI, as well as take care of our existing customer base.” Rashleger continued: “It is critical at this time of economic uncertainty to remain diligent in our business development efforts and to promote an environment focused on growth while providing a wide range of tools to our business development managers to aid in their search for new business opportunities. We are making good progress in revamping our branding and marketing communication strategy, and our intention is to develop a brand platform that will put WSI at the forefront of our industry. Included in our marketing and branding strategy is a complete redesign of our website to make it current with the latest technologies, as well as to better communicate and promote our key strengths, values and capabilities. We anticipate our new site will be launched in the next few months.” Rashleger concluded: “Coinciding with our new business objectives is a continued focus on operational excellence. We are consistently evaluating and working to improve our internal systems and processes to insure we are providing a superior value to our customers.”

WSI Industries, Inc. today reported the addition of Lars Ossmo as Business Development Manager. Mr. Ossmo’s position will be focused on the acquisition of new customers and business.

Benjamin Rashleger, president & chief operating officer, commented: “We are very pleased with the addition of Lars Ossmo to WSI Industries. Lars has 35 years of overall sales experience that includes many years of direct experience in the precision machining industry. His addition to our organization will bring valued depth to our sales development efforts.” Rashleger concluded: “The addition of Lars demonstrates WSI’s commitment to locating and securing new business. In addition to bringing in Lars, we have initiated a new marketing and branding effort, and we are confident that we are positioning our organization to best support our focus on generating new business opportunities, even in this challenging economic environment.”

WSI today reported sales for its fiscal 2010 first quarter ending November 29, 2009 of $4,254,000 versus the prior year amount of $6,035,000.   Net income for the fiscal 2010 first quarter was $104,000 or $.04 per diluted share versus $101,000 or $.04 per diluted share in the prior year first quarter.

Michael J. Pudil, chief executive officer, commented:  “We are pleased to report earnings in our first quarter of $.04 per share.  We were successful in generating results similar to the prior year first quarter, but we were able to achieve these results on a significantly lower sales volume.  Our efforts to size the Company’s operations to the current level of business have been positively rewarded.   We have a lean organization that is generating earnings and cash flow.”  Pudil went on to say:  “Even though our bottom line results were positive, we are still experiencing the effects of the nation’s recession on our top line sales.  While there are hints of an economic recovery, this remains a difficult environment from a sales perspective as potential customers have reduced demand for their own products or are bringing their outsourcing requirements back in-house.”  Pudil concluded:  “The picture for the remainder of the fiscal year remains mixed.  Our customers, as well as the nation in general, remain hesitant about their future growth expectations and when the economy will rebound.  During this time, we have increased our efforts on finding new business and we believe we are well positioned for growth given our financial strength and overall business organization.  We are optimistic about the long-term future as our current customers are all leaders in their respective industries and when that is combined with our own financial stability, we believe we have a competitive advantage in our own marketplace.”

WSI Industries, Inc. today reported sales for its fiscal 2010 first quarter ending November 29, 2009 of $4,254,000 versus the prior year amount of $6,035,000. Net income for the fiscal 2010 first quarter was $104,000 or $.04 per diluted share versus $101,000 or $.04 per diluted share in the prior year first quarter.

Michael J. Pudil, chief executive officer, commented: “We are pleased to report earnings in our first quarter of $.04 per share. We were successful in generating results similar to the prior year first quarter, but we were able to achieve these results on a significantly lower sales volume. Our efforts to size the Company’s operations to the current level of business have been positively rewarded. We have a lean organization that is generating earnings and cash flow.” Pudil went on to say: “Even though our bottom line results were positive, we are still experiencing the effects of the nation’s recession on our top line sales. While there are hints of an economic recovery, this remains a difficult environment from a sales perspective as potential customers have reduced demand for their own products or are bringing their outsourcing requirements back in-house.” Pudil concluded: “The picture for the remainder of the fiscal year remains mixed. Our customers, as well as the nation in general, remain hesitant about their future growth expectations and when the economy will rebound. During this time, we have increased our efforts on finding new business and we believe we are well positioned for growth given our financial strength and overall business organization. We are optimistic about the long-term future as our current customers are all leaders in their respective industries and when that is combined with our own financial stability, we believe we have a competitive advantage in our own marketplace.”

WSI Industries, Inc. today reported sales for the fourth quarter ended August 30, 2009, of $3,993,000 versus the prior year fiscal 2008 fourth quarter of $6,783,000. The Company’s net income in the current year’s fourth quarter was $35,000 or $.01 per diluted share as compared to the prior year’s quarter of $301,000 or $.11 per diluted share.

For the full year, sales for fiscal 2009 were $18,766,000, down from the year earlier amount of $25,882,000. For fiscal 2009 the Company experienced a loss of $159,000 or $.06 per diluted share compared to the prior year’s net income of $1,478,000 or $.52 per diluted share.

Michael J. Pudil, chief executive officer, commented: “Like most companies this past year, we have experienced sales declines and the challenge of streamlining costs in order to regain profitability. We believe that WSI had success during the year as shown by our positive cash flow as well as a return to profitability for the second half of the year. As the country emerges out of the recession, we believe WSI is in a strong position with a state of the art facility, new equipment and a strong balance sheet.” Pudil went on to say: “WSI is fortunate that our customers are leaders in their respective industries and that when economic growth commences, they should be poised to capitalize on it.” Pudil concluded: “As announced last week, we are pleased with the addition of Benjamin Rashleger as our new President and Chief Operating Officer. We are looking forward to his fresh leadership and energy as WSI pursues new opportunities in the months and years ahead.”

WSI Industries, Inc. today announced that Benjamin Rashleger has been appointed as President and Chief Operating Officer. Michael Pudil will continue as Chief Executive Officer and Chairman of the Board for the Company. The Company entered into a new employment agreement with Michael Pudil that established a two year transition period that would provide the Company with the opportunity to proactively implement an orderly succession plan.

Michael J. Pudil, Chief Executive Officer, commented: “We are very pleased with the addition of Benjamin Rashleger. Over the past 16 years he has held various positions with Milltronics Manufacturing Company including President & CFO. Over this period, he helped guide the growth and positioned this high-tech machine tool manufacturer for continued success. Looking forward, I have tremendous confidence in Benjamin’s ability to implement the WSI growth strategy that takes full advantage of our strong financial position and established 60 year reputation in the contract machining industry.” In addition to Benjamin Rashleger, Paul Sheely, Chief Financial Officer, will continue to report directly to Michael Pudil.

WSI Industries, Inc. today reported net sales of $4,736,000 for the third quarter of fiscal 2009 ended May 31, 2009, a decrease of 29% as compared to the year-earlier quarter of $6,703,000. The Company posted net income of $12,000 which equated to break-even on a per share basis for the current quarter, compared to $357,000 or $.13 per share in the third quarter of fiscal 2008. Year-to-date sales in fiscal 2009 were down 23% vs. the prior year as sales decreased to $14,773,000 from $19,099,000 a year ago. Year-to-date diluted earnings per share were a loss of $.07 down from the prior year’s income of $.42.

As compared to the prior fiscal 2009 second quarter, the Company’s sales were up 18%. The Company’s bottom line also improved from a loss of $307,000 in the fiscal 2009 second quarter to its net income of $12,000 in this quarter.

Michael J. Pudil, president and chief executive officer, commented: “Our goal in our fiscal 2009 third quarter was to streamline our cost base and return the Company to profitability without affecting our ability to obtain new business. While our net income was slightly above the break-even point, we made a dramatic improvement from our fiscal 2009 second quarter loss of $307,000. In addition, we have continued to expand our search efforts in order to obtain new customers and projects.” Pudil went on to say: “We anticipate that our fiscal 2009 fourth quarter will be similar to our third quarter that just ended. We will continue working to preserve our balance sheet and conserve our cash as we weather the ongoing recession. We believe that the Company is in an excellent position to capitalize on new opportunities when the country’s economy starts to rebound.”