AP
WSI Industries 3Q Profit Up, Shares Surge
Thursday June 23, 1:14 pm ET
WSI Industries Posts Strong Third-Quarter Profit, Shares Surge More Than 47 Percent
NEW YORK (AP) -- WSI Industries Inc. shares surged more than 47 percent Thursday after the metal components manufacturer reported its third-quarter profit increased sharply on a 35 percent jump in sales.
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The Monticello, Minn.-based company reported late Wednesday profit more than doubled, rising to $174,000, or 7 cents per share, from $61,000, or 2 cents per share, last year. Sales grew to $4.2 million from $3.1 million in the year-ago period.
Shares of the company spiked $1.73, or 47.6 percent, to $5.36 in afternoon trading on the Nasdaq. The stock bounded past its 52-week high of $4.25 set on June 3.
"We expect continued positive earnings and cash flow in our fiscal 2005 fourth-quarter; however we also anticipate somewhat lower sales than in the third quarter which has been our normal trend in prior years," said President and Chief Executive Michael J. Pudil in a statement. "In addition, we are also excited by our previously announced new partnering arrangement with one of our customers that is an industry leader in the biosciences field."
The company did not name the biosciences customer that it has partnered with. However, Pudil said he expects the arrangement will increase sales by about 10 percent as the deal unfolds over the next 12 months to 18 months.
WSI is a contract manufacturer that specializes in the machining of high-precision parts for a wide range of industries, including avionics and aerospace, recreational vehicles, computers, small engines and the defense market.