WD-40 Reports Q3 Results

WD-40 Company has released financial results for its third fiscal quarter ended May 31, 2015. Total net sales for the quarter fell 3% compared to the prior year fiscal quarter. Year-to-date total net sales were $286.2 million, a slight increase compared to the prior year fiscal period.   

Net income for the third quarter was $11.0 million, an increase of 5% percent compared to the prior year fiscal quarter. Year-to-date net income rose 3%

“Foreign currency exchange headwinds and political and economic instability in Eastern Europe continue to adversely impact and distort the true strength of our business,” said Garry Ridge, WD-40 Company's president and chief executive officer. “Our net sales results in the third quarter were negatively impacted by foreign currency issues, particularly in our EMEA segment, as well as significantly reduced sales in our distributor markets in Ukraine and Russia. We experienced strong sales growth in the Americas segment during the third quarter due to increased distribution and promotional activities.”

Net sales of homecare and cleaning products increased 1% for both the current quarter and year to date when compared to the prior fiscal year periods. The homecare and cleaning products, particularly those in the US, are considered harvest brands for the firm, providing healthy profit returns to the company and are becoming a smaller part of the company’s business.

Net sales of multi-purpose maintenance products, which are considered the primary growth focus for the company, fell 4% in the third fiscal quarter but remained relatively constant year to date when compared to the prior fiscal year periods.  The decline in the third quarter was driven primarily by the unfavorable impact of foreign currency exchange rates in EMEA and an isolated product quality issue that was linked to a specific product sold within our Asian distributor markets. The issue: a defective aerosol can component contained in its WD-40 Multi-Use product, the firm said.