Net income for the quarter was $6.2 million, down 23.9% compared to $8.2 million for the second quarter of 2003. Net income for the six-month period decined 15.3% to $10.6 million.
“While we had a few timing setbacks in the domestic business, we continued with solid growth in our international markets,” said Garry O. Ridge, president and chief executive officer, WD-40 Company. “We will continue to build on the strong platform that we have created to manage our business for long-term growth.”
Operating expenses increased 12.4% for the year due to the effect of foreign currency rates, increased advertising and marketing activity, professional services, freight, insurance and other items. The company gave much brand support to Spot Shot and WD-40 to strengthen the brands over time, company executives said.
In the Americas, sales for the quarter declined 8% versus a year ago. In Europe, second quarter sales increased 18% from the comparable period last year. The Asia/Pacific region also grew, with total sales up 39% for the quarter. WD-40 executives attributed the growth to changes made with new marketing distributors and solid brand growth in Australia.
Global sales of WD-40 and 3-In-One Oil were up 7% for the quarter, but sales of heavy-duty hand cleansers Lava and Solvol declined 9% for the quarter. “We continue to grow the Solvol brand in Australia, but are struggling with Lava sales in the U.S.,” said Mr. Ridge. “We are currently developing a plan for future alternatives for the Lava brand.