logo
Share SHARE
FONT-SIZE Plus   Neg

WD-40 Profit Up 16% - Update

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%.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Gas explosion in Fresno in California injured 11 people on Friday afternoon. Pacific Gas and Electric Co. (PG&E) said workers who are not affiliated with the company have struck a 12-inch natural gas transmission pipeline and the gas leaked was ignited due to the dig-in. Verizon Communications' FiOS TV service has modified its programming bundles and will now offer new packages so that users can subscribe only for channels they prefer to watch. Instagram, the photo sharing app owned by Facebook, has updated its community guidelines to disallow nudity and harassment in uploaded photos and pictures, as well as cyber bullying.
comments powered by Disqus
RELATED NEWS
Trade WDFC now with 
Follow RTT