8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 6, 2010

WSI Industries, Inc.
(Exact name of registrant as specified in its charter)

Minnesota	000-00619	41-0691607
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

213 Chelsea Road Monticello, MN	55362
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (763) 295-9202

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Items under Sections 1, 3 through 8 are not applicable and therefore omitted.

Item 2.02 Results Of Operations And Financial Condition.

WSI Industries, Inc. (the “Company”) issued a press release on January 6, 2010 disclosing material non-public information regarding its results of operations for the first quarter ended November 29, 2009. The Company hereby furnishes the press release, which is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements And Exhibits.

Exhibit No.	Description
99.1	Press Release issued on January 6, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WSI INDUSTRIES, INC.

By: /s/ Michael J. Pudil      
Michael J. Pudil
Chief Executive Officer

Date: January 7, 2010

EX-99.1

Exhibit 99.1

For Immediate Release

WSI Industries Reports First Quarter Sales & Earnings

January 6, 2010—Minneapolis, MN—WSI Industries, Inc. (Nasdaq: WSCI) 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. 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:
Michael J. Pudil (CEO), Benjamin Rashleger (President) or Paul D. Sheely (CFO)
763-295-9202

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.

CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
In thousands, except per share amounts

	First quarter ended
	November 29,			November 30,
	2009			2008
Net Sales	$	4,254		$	6,035
Cost of products sold		3,472			5,209
Gross margin		782			826
Selling and administrative expense		530			581
Interest and other income		(8	)		(4	)
Interest and other expense		97			92
Earnings from operations before income taxes		163			157
Income taxes		59			56
Net earnings	$	104		$	101
Basic earnings (loss) per share	$	0.04		$	0.04
Diluted earnings (loss) per share	$	0.04		$	0.04
Weighted average number of common shares outstanding		2,794			2,785
Weighted average number of dilutive common shares outstanding		2,794			2,798

CONDENSED BALANCE SHEETS (Unaudited)
In thousands

	November 29,		November 30,
	2009		2008
Assets:
Total Current Assets	$	7,629	$	8,615
Property, Plant, and Equipment, net		7,250		8,164
Intangible Assets, net		2,954		2,847
Total Assets	$	17,833	$	19,626
Liabilities and Shareholders’ Equity:
Total current liabilities	$	3,976	$	4,011
Long-term debt		4,675		6,477
Shareholders’ equity		9,182		9,138
Total Liabilities and Shareholders’ Equity	$	17,833	$	19,626