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WD-40 Profit Up 16% - Update

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4/5/2012 5:04 PM ET

Maintenance products company WD-40 Co. (WDFC: Quote), 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%.

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by RTT Staff Writer

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