San Diego, CA
Sales: $292 million
$292 million. Net income: $26 million for the year ended Aug. 31, 2009
Garry O. Ridge, president and chief executive officer; Michael Freeman, division president, The Americas; Michael Irwin, executive vice president, chief financial officer and treasurer; Graham P. Milner, executive vice president, global development and chief branding officer
WD-40, 3-In-One Oil, Blue Works, Spot Shot Instant Carpet Stain Remover, 2000 Flushes, Lava Heavy-Duty Hand Cleaner, X-14 Bathroom Cleaner, Carpet Fresh
Blue Works specialty maintenance products
WD-40’s new Blue Works line.
Consolidated net sales and net income decreased 8% and 5%, respectively, primarily due to the unfavorable impact of changes in foreign currency exchange rates, the company said. On a constant currency basis, net sales and net income would have increased 2% and 11%, respectively.
Sales of multi-purpose maintenance products fell 5% due to sales declines of 12% in both the Europe and Asia-Pacific segments, partially offset by a sales increase of 3% in the Americas segment. According to WD-40, the fiscal year 2009 sales decline in the Europe segment was due solely to the impact of changes in foreign currency exchange rates. In local currency, Europe posted a 12% increase in sales of multi-purpose maintenance products for fiscal year 2009.
Sales of home care and cleaning products fell 18%, which the firm attributed to decreases in the Americas, Asia-Pacific and European segments of 19%, 15% and 12%, respectively. The fiscal 2009 sales decline in the Americas segment was due to several factors including lost distribution, competition and general economic conditions, according to WD-40. Sales declines in the Europe and Asia-Pacific segments were due solely to the impact of the changes in foreign currency exchange rates. In local currency, the Europe and Asia-Pacific segments experienced increases of 11% and 6%, respectively, in sales of home care and cleaning products.
On a positive note, WD-40 increased gross profit as a percentage of net sales to 49.5% for fiscal year 2009 from 46.8% for fiscal year 2008, primarily due to the impact of worldwide price increases implemented on certain products during fiscal year 2009.
WD-40 has been shifting its focus to the multi-purpose maintenance products segment, admittedly diverting R&D resources away from home care and cleaning products. Visible changes of its strategy shift are streamlined offerings within the X-14 brand and the roll out of a new range called Blue Works. Featuring the “WD-40 Company Signature of Endorsement,” Blue Works industrial grade specialty maintenance products includes lubricants, penetrants, degreasers and cleaners.