logo
Share SHARE
FONT-SIZE Plus   Neg

WD-40 Profit Up 16% - Update

Maintenance products company WD-40 Co. (WDFC), Thursday reported a sixteen percent rise in profit for the second quarter due mainly to strong growth in the Americas and Asia Pacific, and on lower taxes. Both earnings and sales for the quarter topped Street analysts' estimates.

Looking forward, the company essentially reaffirmed its outlook for the full year 2012, but made adjustments to its earnings per share guidance to reflect a lower share count for the period.

San Diego, California-based WD-40 said its second-quarter sales grew 9 percent from last year, with multi-purpose maintenance products segment up 9 percent, and home care and cleaning products sales up 6 percent.

By region, Americas sales grew 21 percent from last year, while Asia Pacific surged 28 percent. Europe slid 12 percent.

CEO Garry Ridge said the company continues to see short-term challenges in certain parts of Europe, while remaining bullish about prospects in China.

Gross margin for the quarter slid to 49 percent from 51.8 percent last year, due mainly to rising cost of petroleum-based materials and aerosol cans.

WD-40 reported quarterly net income of $10.6 million or $0.65 per share, compared to $9 million or $0.53 per share last year. Results for the current quarter reflect a lower share count.

On average, five analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter was $86 million, compared to $79 million last year. Analysts expected $85.3 million for the quarter.

WD-40 continues to expect fiscal 2012 net income of $37.2 million to $39.2 million and revenue of $353 million to $370 million.

The company now expects 2012 earnings of $2.33 to $2.45 per share based on 16 million shares outstanding, compared to its earlier estimated earnings of $2.28 to $2.40 per share based on 16.3 million shares outstanding.

Analysts currently expect earnings of $2.35 per share and revenue of $357.41 million for 2012.

WDFC closed Thursday on the Nasdaq at $44.78, up $0.10 or 0.22%. In after hours, the stock gained $1.24 or 2.77%.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
RELATED NEWS
Trade WDFC now with 
Follow RTT