HCC Records Revenue Increase

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HCC Records Revenue Increase

Rerefiner Heritage-Crystal Clean Inc.’s oil business segment reported a 29% increase in revenues for its third quarter ending Sept. 7, and WD-40 reported a 76% jump in net income for the fourth quarter of its fiscal year, compared to results in the same periods last year.

Heritage-Crystal Clean

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Heritage-Crystal Clean’s oil business segment – which includes used oil collection activities, sales of recycled fuel oil and rerefining activities – posted revenues of $65.5 million, a hefty improvement from $14.7 million. Based in Elgin, Illinois, the company attributed the large increase mainly to an increase in base oil prices.

The segment’s operating margin decreased to 41% in the third quarter, compared to a record high 43% in the year-earlier period. The lower operating martin was mainly due to an increase in transportation related expenses, increased downtime at its rerefinery in Indianapolis and other inflationary pressures across the segment, which offset an improvement in the spread between the netback – sales price net of freight impact – on the company’s base oil sales and the price paid to or charged to its customers for the removal of their base oil, HCC said in its earnings news release.

“We continued to manage the spreads in our oil business effectively, which allowed us to take

advantage of high base oil prices during the quarter,” Brian Recatto, HCC president and CEO, said in the news release. “Despite inflationary pressure in various areas, we were able to

deliver an operating margin in excess of 40% for the second consecutive quarter for the first time in our history.”

WD-40

San Diego-headquartered WD-40 reported $14.8 million in net income for its fiscal quarter ending Aug. 31, a large increase from $8.4 million in the same period last year. For its full fiscal year, the company reported net income of $518.8 million, 6% higher than $488.1 million.

Net sales for the quarter reached $130.4 million, a 13% improvement from $115.2 million. Net sales for the fiscal year ended Aug. 31 were up 6% at $518.8 million.

Net sales for the Americas in the quarter were up 25% at $68 million. The improvement in the quarter was driven mainly by higher sales in the United States and Latin America, which increased 16 percent and 79 percent, respectively, the company said. For the fiscal year, net sales in the region increased 12% to $240.2 million.

In Europe, the Middle East and Africa, net sales declined 3% to $43.6 million in the quarter. The company attributed the decrease primarily due to changes in foreign currency exchange rates. For the fiscal year, the region’s net sales were down 2% at $204.7 million.

Net sales in Asia-Pacific climbed 18% to $18.8 million in the quarter. WD-40 attributed the increase primarily to a 64% increase in sales in Asia distributor markets, which were partially offset by a 21% decline in sales in China. Sales in the region were also up 13% for the fiscal year at $73.9 million.

“Fiscal year 2022 was a challenging year dominated by inflation, geopolitical tensions, currency headwinds, and continuing disruptions caused by the COVID-19 pandemic,” WD-40 President and CEO Steve Brass, said in the company’s earnings news release.

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