WD-40 reported net income of $16.1 million for the quarter ending May 31, up 12 percent from a year earlier, with net sales up 9 percent at $107 million.
Earnings reached $1.15 per diluted share in the third fiscal quarter, up from $1.02 a year earlier. San Diego-based WD-40s fiscal year goes from Sept. 1 to Aug. 31.
Net sales were up 8 percent in the Americas at $53 million, up 15 percent in Europe, Middle East and Africa at $39.6 million and down 2 percent in Asia-Pacific at $14.5 million.
The company said in its earnings news release that sales were up in the Americas primarily due to higher sales of maintenance products. The increase in sales was also driven by higher sales of maintenance products in Canada and Latin America driven by successful promotional programs in the regionals, WD-40 stated. In addition, sales in the Americas were higher year over year due to certain customers buying product in advance of a price increase, which went into effect in June 2018.
Net sales in the EMEA region also increased primarily due to higher sales of maintenance products. The sales increase was also driven by changes in foreign currency exchange rates, which had a favorable impact on sales for the region.
The Asia-Pacific net sales decline was attributed primarily to a decrease in sales in the segments distributor markets as a result of the company transitioning to new marketing distributors in certain regions, as well as timing of customer orders compared to in the year-earlier period.
We had a solid quarter and are pleased that we achieved both sales and earnings results which reflect new record highs for the company, Garry Ridge, WD-40 president and CEO, said in a news release. Ridge noted the company continues to see the impact of higher commodity prices, which have begun to deteriorate some of its gross margins in all three of its operating segments. WD-40 has implemented some price increases to ensure its gross margin remains in-line with its business model, he added.