EnPro Industries (AMEX:NPO), maker of industrial machinery, is trying to counter a backstory of misspent youth. It is ending up better than many had expected: management savvy, its global reach and its product diversity are turning around a company with a sad asbestos history.

EnPro manufactures sealing products, metal polymer and filament wound bearings, air compressors and diesel and natural gas-fired engines, among other industry widgetry. It sells in more than 100 countries to customers spanning chemical processing, petroleum refining, food processing, truck making, freight hauling and shipping, power generation and more.

With a breadth of products and geographic expansion, Charlotte, N.C.-based EnPro carved out a sales gain of 11% in 2007 through Dec. 31 to $1 billion. Increased industrial demand from 2006 in the United States and Europe, stronger energy markets and a rise in shipments of diesel engines and parts spurred the revenue rise.

Before asbestos-related expenses and other select items, income in 2007 improved by 26% to $83.8 million, or $3.75 a share, compared with $66.6 million, or $3.09 a share, in 2006. Including asbestos-related costs of $68.4 million in 2007, compared with $359.4 million in 2006, net income was $1.80 per share in 2007, turning around a loss of $7.60.

Asbestos claims remain a grim reminder of the past. The liability of resolving the claims on a rolling 10-year basis is expected near $520 million — an inexact science indeed. Certain experts have broad ranges for costs, and legal fees could add significantly to the expense.

If every family has a black sheep, EnPro was Goodrich Corp.’s (NYSE:GR). Spun off in 2002, it was laden with asbestos claims from its Garlock Sealing Technologies subsidiary, claims alleging injury or death from exposure to asbestos fibers used in sealing products, including gaskets and packing goods. EnPro has . . .

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