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
Athletic clothing company Under Armour has ended sponsorship of a female hunter after a video that showed her husband killing a bear caused an outrage. Sponsorship of Sarah Bowmar, the wife and hunting companion of US hunter Josh Bowmar, was dropped by Under Armor following the negative response to... The City of Somerville has decided not to appeal a key environmental permit granted in July for Wynn Resorts Ltd.'s $2.1 billion Everett casino project. The decision paves the way for work on the casino project, known as Wynn Boston Harbor, to go ahead. Apple Inc. is planning to launch three new iPhone models in 2017, including a premium handset with a curved display, the Nikkei Asian Review reported Monday, citing sources familiar with Apple's plans. The new iPhone models will reportedly include a 4.7-inch model, a 5.5-inch model and the premium handset that will be either 5.5 inches or larger.
comments powered by Disqus
Follow RTT