Environmental Elements Corp., a Baltimore-based maker of pollution-control equipment, is considering a sale or merger, the company announced yesterday.

The company has hired Legg Mason Wood Walker Inc. as its financial adviser to assist the company's "evaluation of strategic alternatives," it said in a statement.

No one at the company or Legg Mason was available for comment yesterday.

Last month, Environmental Elements reported that profit fell 86 percent in its second quarter, which ended Sept. 30. It blamed the slowdown in the utility and pulp-and-paper industries, which include its major customers. It also said last month that it had laid off 15 workers, leaving about 80 people at its headquarters.

This followed what had looked like a successful turnaround for the company.

Environmental Elements had brought in John L. Sams as president in 2000. Just a year ago, Sams said that the recession had not affected the company and that it was ahead of performance projections.

Bob Ross, president of Republic Equipment Co. in Cincinnati, which has sold Environmental Elements products for about 15 years, said he has seen a lot of consolidation in the industry. "This doesn't surprise me," Ross said of Environmental Elements' new strategy. "The larger companies are acquiring the smaller companies, just like in every industry."

Republic represents companies that sell equipment for power plants in general, not just the pollution-control devices sold by Environmental Elements.

He added that changes in federal regulations for power plants have the industry trying to position itself with new and improved products, and searching for efficiencies.

Shares of the company's stock closed yesterday at $2.49, up 35 cents.