Oil-Dri Corporation of America (NYSE: ODC) executives said in a brief Friday morning conference call the company’s outlook is positive.

“We have good trends in the higher margin bio-diesel products,” CEO Daniel Jaffee said on the call. “Higher selling prices are offsetting lower volume, along with cost-cutting.”

Jaffee said on the call that the increasing cost of fuel impacts the company’s operating costs and the company will offset the cost by increasing prices during the upcoming fiscal year.

The Chicago-based company, which makes cat litter and sorbent products, after the close of trading Thursday reported $53 million in revenue for the third quarter ended April 30, up from $52 million in the same quarter in 2006. Oil-Dri reported a quarterly profit of $2 million, or $0.28 a share, up 65% from $1.2 million, or $0.17 a share, a year earlier.

In midday trading, shares in Oil-Dri Corporation of America were up 3.5% at $17.01. The company’s stock has ranged between $12.83 and $18.83 over the last 52 weeks.