WD-40 Posts Record Results

WD-40 Co. today reported net sales for the fiscal year ended Aug. 31, 2000 rose 4.4% to a record $152.7 million. Net income however, fell 6.8% to $20.6 million. “We are pleased with the record year and are equally happy with the growth we have made in building our infrastructure and the platform for future growth. The lower earnings for the year were a result of our investment in our growth strategy, and although anticipated, these results were disappointing,” said Garry O. Ridge, president and chief executive officer of WD-40 Co. Sales of WD-40, the company’s core brand, were flat for the year, but sales of Lava soap improved 20% and the company increased distribution into about 35% of its customer base in the U.S.

In the Americas, sales for the quarter were down 6.0% from last year but were up 7.7% for the year. In Europe, fourth quarter sales were down 10.9% from the comparable period last year and are down 7.9% for the year. “The continued mergers in key retail segments in the UK and France havestalled our ability to implement some of our promotional programs and that has had an impact on sales,” said Mr. Ridge. “We were also impacted by currency exchange rates, but are pleased with the growth we are seeing in many of our distributor markets.” In the Asia/Pacific region, total sales for the quarter were up 23.1% from the comparable period last year and are up 15.0% for the year. “We are very pleased with our performance in Asia and have fully recovered from the crisis of the past few years,” Mr. Ridge said. “We also recently announced the acquisition of the Solvol brand of heavy duty hand soap in Australia that will give us a strong addition to our fortress of brands.” Starting Oct. 1, 2000, Solvol will be manufactured and marketed by WD-40 Co. (Australia) Pty Limited, in Australia, New Zealand and Fiji.