WD-40 sales decline in 3Q
WD-40 Company reported net sales for the third quarter were $92.5 million, a decrease of 3 percent 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.
Foreign currency translations had an unfavorable impact on sales for the current quarter and year to date. On a constant currency basis total net sales would have been $96.5 million for the third quarter and $292.9 million year to date.
Net income for the quarter was $11.0 million, an increase of 5 percent compared to the prior year fiscal quarter. Year-to-date net income was $33.1 million, an increase of 3 percent from the prior year fiscal period.
Diluted earnings per share were 75 cents in the third quarter, compared to 69 cents for the prior year fiscal quarter. Year-to-date diluted earnings per share were $2.24 compared to $2.10 in the prior year fiscal period.
"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. Our Asia-Pacific segment is on track for a great year despite an isolated product quality issue linked to a defective aerosol can component contained in our WD-40 Multi-Use Product sold within our Asian distributor markets. This product quality issue caused sales levels to be lower during the third quarter."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
