WD-40 Earnings Up

WD-40 posted net income of $18.1 million for the quarter ending May 31, up more than 12 percent from a year earlier, with net sales up 6.5 percent at $114 million.

Earnings reached $1.30 per diluted share in the third fiscal quarter, up from $1.15 a year earlier. San Diego-based WD-40s fiscal year goes from Sept. 1 to Aug. 31.

Net sales were unchanged in the Americas at $53 million, up 13 percent in Europe, Middle East and Africa at $44.5 million and up 14 percent in Asia-Pacific at $16.5 million.

The company said in its earnings news release that sales in the Americas remained constant compared to a year earlier primarily due to lower sales of maintenance products in Latin America and Canada, compared to the prior year fiscal period. The decrease in sales was because in the comparable period last year, customers were buying high volumes of product in advance of the companys planned price increases. This decline in sales was offset by higher sales of WD-40 Specialist and WD-40 Multi-use Product in the United States.

The increase in sales in Asia-Pacific was attributed to an increase in sales of WD-40 Multi-Use product in Asia distributor markets. The company explained that the significant increase in sales was because, in the comparable period last year, sales in Asia distributor markets were negatively impacted by the transitioning of three distributor partners in the region.