San Diego Business Journal

WD-40 Reports Rise in Quarterly Profit, Sales

By Mike Allen Wednesday, April 11, 2012

WD-40, a San Diego-based maker of household maintenance products, reported fiscal 2012 second-quarter net income of $10.6 million, up 16 percent from the like quarter of the prior fiscal year.

For the six months, the company’s net income was $17.4 million, down 4 percent from the first half of the 2011 fiscal year.

Sales for the most recent quarter that ended Feb. 29 were $86 million, up 9 percent from the like quarter of 2011.

For the first half, WD-40 said sales were $170.9 million, up 7 percent from the like period of 2011.

Gross margin of 49 percent in the quarter was down from 51.8 percent in the like quarter of 2011, while year-to-date gross margin was 48.8 percent, compared with 51.4 percent in the same period of 2011.

CEO Garry Ridge said the company failed to hit its 50 percent gross margin target due to the rising cost of petroleum-based materials and aerosol cans, but those increases were partially offset by positive impacts of sales price increases.

The company said it expects 2012 net sales of $353 million to $370 million, net income of $37.2 million to $39.2 million, and diluted earnings per share of $2.33 to $2.45, based on an estimated 16 million shares outstanding.