Environmental Elements Corp. announced first-quarter net income yesterday of $221,000, up 6.8 percent from the $207,000 reported for the first quarter of 1998. Earnings per diluted share remained unchanged at 3 cents in the three months that ended June 30.

The Baltimore-based provider of air pollution control systems said it had revenue in the quarter of $11.8 million, down 40 percent from $16.5 million posted for the corresponding period a year ago.

Ted Verdery, chairman and chief executive officer, said although revenue declined, "the work we are doing has a higher premium for the customer and earns a higher profit."

New orders were up 43 percent in the quarter, to $16.9 million from $11.8 million in 1998. The company also reported an increase of 27 percent in orders not yet filled by the end of the period of $82.3 million from $65 million.

"The second half of the year we expect to be significantly better," Verdery said. "As our backlog grows, that supports that conclusion."