Global sales of the lubricants WD-40 and 3-in-One rose 7.4 percent for the fourth quarter ending Aug. 31, to $58.1 million compared to the year-earlier period. For the full year, WD-40 said global sales increased 9.1 percent, to $235.9 million, compared to the year 2007 total.
WD-40 on Oct. 15 reported net sales for the quarter and year of $76.9 million and $317.1 million, down 2.6 percent for the quarter compared to the year-earlier period and up 3 percent compared to the prior year. Net income shrank 49.7 percent to $4.7 million for the quarter, compared to 2007s fourth quarter, and fell 12.4 percent for the year to $27.6 million versus year 2007s total. San Diego-based WD-40s fiscal year runs from Sept. 1 to Aug. 31.
While we saw the best of times with the international growth of the WD-40 and 3-In-One brands, we also saw rising costs of components and raw materials, sales challenges with our homecare and cleaning brands, and deteriorating economic conditions in the U.S., said Garry Ridge, WD-40 company president and CEO.
Earnings per share were 28 cents in the fourth quarter, compared to 54 cents per share in the same quarter a year earlier. For the year 2008, earnings per share reached $1.64, compared to $1.83 for the previous year.
In the Americas, the companys sales for the fourth quarter declined 9.1 percent compared to the year-earlier period. For the full year, sales in the Americas decreased 5.5 percent, compared to 2007.
The company explained that sales in the U.S. declined during the year as customers reduced inventory levels and in-store promotional activities in response to the slowing economy. WD-40 said it also shifted some promotional activities to fiscal year 2009, because of supply constraints related to distribution of the WD-40 Smart Straw.