January 11, 2017
Volume 17 Issue 52
Foreign Currency Hinders WD-40 Results
WD-40 Co. posted $11.8 million in net income for its first quarter ending Nov. 30, a 3 percent decrease from a year earlier.
For the WD-40, 3-in-One and Blue Works lubricants segment, worldwide net sales reached 79.2 million for the first fiscal quarter, down 4 percent from a year earlier. San Diego-based WD-40’s fiscal year runs from Sept. 1 to Aug. 31.
Compared to the year-earlier quarter, net sales in the Americas declined by 4 percent, down to $44.8 million. WD-40 said the decline in net sales in the Americas in the first fiscal quarter was primarily driven by lower maintenance product sales in the United States and Latin America. Sales in Europe, the Middle East and Africa fell 6 percent to $30.3 million, and Asia-Pacific sales grew to $16.1 million, an increase of 1 percent.
“As a global company that generates nearly 40 percent of its sales in currencies other than the U.S. dollar, foreign currency exchange headwinds continue to have an impact on our reported results,” said WD-40 President and Chief Executive Officer Gary Ridge in the company’s earnings report. Ridge continued, “While we expect we will continue to see fluctuations in the performance of certain markets quarter to quarter, our long-term growth plans remain unchanged.”