WD-40 reported net income of $11 million for the quarter ending May 31, up 5 percent from a year earlier, with net sales down 3 percent at $92.5 million.
Earnings reached 75 cents per diluted share in the third quarter, up from 69 cents a year earlier. Based in San Diego, WD-40s fiscal year goes from Sept. 1 to Aug. 31.
Net sales increased by 10 percent in the Americas to $49.7 million, decreased 17 percent in Europe, Middle East and Africa to $30.3 million, and declined 11 percent in Asia-Pacific to $12.4 million, compared to year-earlier results.
WD-40 President and CEO Garry Ridge said in a statement that the combination of foreign currency issues and instability in the political and economic spheres in Eastern Europe, including significantly reduced sales in the companys distributor markets in Ukraine and Russia, greatly impacted WD-40s net sales during the quarter.
EMEA markets are still seeing organic sales growth in their local currencies, Ridge pointed out.
In the Americas, he noted the company experienced strong sales growth during the quarter due to increased distribution and promotional activities.
Ridge said the Asia-Pacific segment looks to remain on track, despite an isolated product quality issue linked to a defective aerosol can component contained in our WD-40 Multi-Use Product sold within our Asian distributor markets. This product quality issue caused sales levels to be lower during the third quarter.
For the WD-40, 3-in-One and Blue Works lubricants segment, worldwide net sales decreased 4 percent to $81.5 million.