Posted July 7, 2011
WD-40 sales up 4%
WD-40 Company reported net sales for the third quarter of $85.5 million, an increase of 4% from the third quarter last fiscal year.
Year-to-date net sales were $245.7 million, up 2% from the same period last fiscal year. Net income was $8.1 million, a decrease of 12% compared to the prior year fiscal quarter. Year-to-date net income was $26.2 million, a decrease of 10% from the prior fiscal year.
Americas segment sales were down 1% compared to the third quarter last fiscal year and year-to-date sales fell by 8%. European sales increased by 4% for the quarter and up 9% year-to-date. Asia-Pacific segment sales were up 23% for the quarter and up 33% for the year.
"We are seeing the roll through from increases in commodity prices during this fiscal year which have negatively impacted our gross margin. We are also experiencing sales challenges in the United States due to reduced product offerings and lost promotional opportunities with certain key customers," said Garry Ridge, WD-40 Company president and chief executive officer. "To help improve our margins, we are implementing price increases in some markets late this fiscal year, working to bring innovation to the market sooner, and focusing our marketing efforts on increasing product usage among our heavy users to pull more product off the shelf."
