Worldwide sales of WD-40 and 3-in-One Oil in the quarter and year ending Aug. 31 were $50.2 million and $190.5 million respectively, posting a 1.2 percent drop for the quarter but a 9.4 percent gain for the year. This is the fourth year in a row where we have grown our lubricant business by more than 8 percent across the globe, said WD-40 Co. President and CEO Garry O. Ridge.
The San Diego based lubricant, hand cleaner and household products manufacturer reported last week that total sales for the fiscal year reached a record $286.9 million, an increase of 9 percent over $263.2 million the previous year. Net income was $28.1 million compared to $27.8 million last year.
Total net sales for the fourth quarter were $75.2 million, a 1.5 percent decrease from the fourth quarter last year, while total net income for the quarter was $6.3 million, a decrease of nearly 40 percent compared to the same period last year.
In the current fiscal year ending Aug. 31, 2007, the company expects net sales to grow 7 to 13 percent, with net income of $29 million to $31.6 million, reflecting the impact of the companys move to open direct operations in China. The investment in China is expected to reduce net income in 2007 by about $1 million, or 6 cents per share, the company announced. We are pleased to announce that we are making great progress in opening our direct operations in China, Ridge said. We feel the investments we are making in China now are similar to an acquisition, but they impact the P&L, more so than the balance sheet.
Total sales for the quarter ending Aug. 31 were 64 percent from the Americas, 28 percent from Europe and 8 percent from Asia/Pacific. We had solid growth for the year in Canada and Latin America, driven by lubricant sales, said Ridge. U.S. sales growth was spurred by household products.