WD-40 posted net income of $12.7 million for the quarter ending May 31, up 16 percent from a year earlier, with net sales up 4 percent at $96.4 million.
Earnings totaled 88 cents per diluted share in the third fiscal quarter, up from 75 cents a year earlier. San Diego-based WD-40s fiscal year goes from Sept. 1 to Aug. 31.
Net sales were up slightly in the Americas at $49.9 million, up 9 percent in Europe, Middle East and Africa to $32.9 million, and up 10 percent in Asia-Pacific to $13.6 million.
In its earnings news release, the company said net sales in the Americas were flat in the quarter primarily due to a 3 percent increase in maintenance sales, which was offset by a 13 percent decrease in homecare and cleaning product sales.
The increase in maintenance product sales in the segment was driven primarily by increased sales in the United States, which benefitted from expanded distribution of WD-40 EZ Reach, the company stated. The EZ Reach can features a long, flexible straw that bends and keeps its shape. This growth was partially offset by sales declines in Canada associated with promotional programs and unstable market conditions in the industrial channel in Western Canada.
Meanwhile, sales in the EMEA distributor markets increased 7 percent compared to a year earlier, primarily due to increased sales in Russia and Ukraine, WD-40 said, driven by improving market conditions in the region.
The Asia-Pacific net sales increase was attributed primarily to a 32 percent increase in sales in Asia-Pacifics distributor markets. The increase was partially offset by unfavorable impacts of foreign currency exchange rates in both China and Australia.
We had a good quarter and are pleased we have seen solid year-over-year sales growth in maintenance products throughout all three of our trading blocs during the third quarter, despite the foreign currency exchange rate fluctuations, which continue to impact our reported results, said Garry Ridge, WD-40s president and CEO.