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WSI Industries (WSCI: Summary, Messages, Articles) is a maker of precision components and primarily serves the metal machining contract business. The company biggest customers are the aerospace, avionics, defense industries, recreational vehicles markets, and computer components and bioscience industries. The 50-year old company competes with companies such as Hayes Lemmerz International Inc., Delphi Inc. and privately held Newcor Inc.

Minnesota-based WSI Industries actually reported positive net income for the most recent fiscal year while competitors Delphia and Hayes Lemerz both reported sizable losses. In June, the company reported a 56% increase in net income for the third quarter compared to the year-ago period. Net income for the quarter was $357,000 or $0.13 per share, compared to $229,000, or $0.08 per share, in the prior-year period. Sales for the quarter surged 28 percent to $6.7 million from $5.2 million in the same period in 2007.

The company also declared a dividend of nearly four cents a share. Last year, WSI Industries entered a new business market that could be beneficial for shareholders when the company began selling parts to oil and gas drilling and production firms. WSI also recently made Fortune’s list of Top 100 Fastest Growing Small Businesses. The company was ranked No. 43 on the list.

The $20 million company has seen its shares rise by 62 percent in the past 52 weeks. The latest filings showed 475,000 WSI shares, or 17 percent, were held by institutions, almost double from the last report. Shares closed today at $7.13 and have traded as high as $17.64 in the past year.

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