WD-40 Co. on Thursday reported its net sales for its second quarter, ended Feb. 28, reached $79.3 million, an 11 percent increase over 2006s second quarter, while net income rose 23.6 percent, to $8.9 million, compared to the year-earlier period.
Earnings per share were 52 cents in the first quarter, compared to 43 cents per share in the same quarter a year ago, an increase of 21 percent. Cost of goods during the first quarter was 50.8 percent of sales, compared to 52 percent in the second quarter of 2006, the San Diego-based company reported.
For fiscal 2007, ending Aug. 31, the company reaffirmed that it expects net sales to grow 7 percent to 13 percent, from $307 million to $324 million, with a projected net income in the range of $29 million to $31.6 million. The fiscal year 2007 outlook reflects the impact of the companys plans to open a direct operation in China. WD-40 expects the results from the first year of direct operations there to reduce net income in 2007 by about $1 million, or six cents per share. We opened our operation in China on time and are now able to provide direct service to our customers in that country, said Garry Ridge, WD-40 president and chief executive officer.
Global sales of the lubricants WD-40 and 3-in-One were up 15.7 percent. Total sales included 61.7 percent from the Americas, 30.7 percent from Europe and 7.6 percent from Asia/Pacific. In the Americas, sales for the quarter were up 7.6 percent from a year ago. We had strong growth of the WD-40 brand across the Americas, which were offset slightly by declines in the 3-in-One brand in some of our household products, Ridge said.
In Europe, sales were up 19.1 percent for the second quarter. The company continued to experience strong growth throughout Europe in both its direct and distributor markets.
In the Asia/Pacific region, sales for the second quarter were up 8.7 percent from a year ago. Australia continued a strong growth trend thanks to the development of our No Vac brand along with WD-40, Ridge said.