Annual Sales Rise 5% at WD-40

WD-40 Company reported fourth quarter net sales rose 12% to $90.7 million. The quarter ended Aug. 31, 2011. Year-to-date net sales increased 5% to $336.4 million—a record for the company.

Net income for the fourth quarter jumped 48% to $10.2 million. Year-to-date net income stayed almost flat, rising 1% to $36.4 million.

Fourth quarter multi-purpose maintenance products sales, which include WD-40, 3-in-One and Blue Work rose 16% to $74.1 million and increased 8% to $278.8 million year-to-date. Home care and cleaning products sales, which include all other brands, were $16.6 million for the fourth quarter, down 1% from the prior year fiscal quarter, and were $57.6 million year-to-date, down 9% compared to the prior fiscal year.

Americas segment sales in the fourth quarter rose 2% to $46.4 million and fell 6% to $169.9 million year-to-date. Europe segment sales in the fourth quarter were up 26% to $34.7 million and climbed 14% to $125.4 million year-to-date. Asia-Pacific segment sales were $9.6 million in the fourth quarter, up 25% from the prior year fiscal quarter, and were $41.1 million year-to-date, up 31% compared to the prior fiscal year period.

“While we are happy with the big year we had and our record sales and net income, the year was not without its own pains with the pressure of rising commodity prices, reduction of gross margin and flat earnings.” said Garry Ridge, WD-40 Company president and chief executive officer.

Net sales by segment as a percent of total net sales were as follows: for the Americas, 51% for both the fourth quarter and year-to-date; for Europe, 38% for the fourth quarter and 37% year-to-date; and, for Asia-Pacific, 11% for the fourth quarter and 12% year-to-date. During the fourth quarter 59% of total sales came from outside the United States.

“We launched three new products in the new WD-40 Specialist product line, a portfolio of specialty problem-solving products aimed at the trade and doer enthusiast, as planned in 2011 and had our first shipment to a customer in September 2011,” Ridge said.”We will add new items as we roll out the line in January 2012 in the US and in other regions later in the year.”

WD-40 Company expects fiscal year 2012 net sales of $353.0 million to $370.0 million.