WSI Industries, Inc. (Nasdaq: WSCI) 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.”