(RTTNews) - Wednesday, consumer product company WD-40 Co.(WDFC: News ), reported a 63.8% surge in profit for the fourth quarter, reflecting improved gross margins and sales, with both earnings and revenues coming in well ahead of Street estimates. Looking ahead, the company provided its outlook for fiscal year 2010. Shares of WD-40 climbed more than 5% in the after-hours trade, following the announcement of results.

The San Diego, California-based company's net income for the fourth quarter rose to $7.62 million or $0.46 per share from $4.65 million or $0.28 per share in the year-ago quarter.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.

Quarterly sales climbed 1.1% to $77.75 million from $76.92 million in the prior-year quarter. Analysts expected revenue of $71.65 million for the quarter.

Segment-wise, multi-purpose maintenance product sales for the quarter, which include the WD-40 and 3-IN-ONE brands, were $59.6 million, up 2.6% from the previous-year quarter. Homecare and cleaning product sales, which include all other brands, dropped 3.4% year-over-year to $18.2 million.

America's segment sales for the quarter were up 4.0% , Europe segment sales rose 0.2%, while Asia/Pacific segment sales dropped 12.0% from the year-earlier quarter.

Gross margin for the fourth quarter expanded to 51.6% from 44.8% in the same period last year.

Income from operations for the quarter increased to $11.27 million from $7.58 million in the previous-year quarter, while operating expenses rose to $28.87 million from $26.88 million last year.
Advertising and sales promotion expenses for the quarter declined 10.7% from the same period last year.

Garry Ridge, President and CEO, WD-40 said,"While we have seen tough times during the past year with lots of uncertainty, our tribe focused on reaching our target goals and delivered impressive results."

For the full-year, net income declined 4.8% to $26.28 million from $27.62 million last year. On a per share basis, earnings dropped to $1.58 per share from $1.64 per share in the same period last year. Net sales for the year decreased 7.9% to $292.00 million from $317.11 million in the previous year.

The Street expected the company to report earnings of $1.52 per share on revenues of $285.90 million for the full-year.

During the year, foreign currency exchange rates negatively impacted net sales by $30.0 million and net income by $4.5 million. In constant currency, however, the company would have seen sales increases of 2% and net income increases of 11% for the year.

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