October 25, 2017
Volume 17 Issue 52
Q3 Earnings Wrap-up: HCC, WD-40
Rerefiner Heritage-Crystal Clean posted a drop in revenue for its Oil Business segment in the third quarter ending Sept. 9, while WD-40 saw a minor increase in net income for the quarter ending Aug. 31, the fourth quarter of its fiscal year, compared to results a year earlier.
Heritage Crystal Clean’s oil business segment – which includes used oil collection activities, sales of recycled fuel oil and rerefining activities – reported $28.3 million in revenue for the third quarter, a decrease of 7.5 percent compared to $30.6 million posted in the same quarter last year. The company attributed the decrease to rail service issues with one of its vendors and incremental expenses from a planned shutdown at its Indianapolis rerefinery.
"Despite additional costs associated with a scheduled, extended shutdown during the beginning of our third quarter and logistical challenges caused by railroad service disruptions, we were still able to generate operating margin of almost 5 percent,” said Brain Recatto, president and chief executive officer of the Elgin, Illinois-based rerefiner.
Recatto continued, “The capital improvements completed during the shutdown should allow us to reduce future downtime and improve profitability."
San Diego-headquartered WD-40 posted a net income of $14.4 million for its fourth quarter, hopping 1 percent from the same quarter last year.
Net income for fiscal year 2017, ending Aug. 31, was $53.9 million, another 1 percent increase compared to the year prior.
For the company’s lubricants segment – which includes WD-40, 3-in-One and GT85 maintenance products – worldwide net sales totaled $86.4 million in the fourth quarter, virtually unchanged from a year earlier. Global net sales for fiscal year 2017 were $342.3 million, a modest 1 percent increase from fiscal 2016 net sales.
“Our WD-40 Specialist product line continued to perform well and delivered 20 percent annual revenue growth in fiscal year 2017,” said Gary Ridge, WD-40’s president and CEO, in the company’s earnings release.
The Americas accounted for half of sales in the quarter, followed by Europe, the Middle East and Africa with a combined 37 percent, and Asia-Pacific with the remaining 13 percent. For the fiscal year, the Americans made up 49 percent of global sales; Europe, the Middle East and Africa took up a combined 36 percent; and Asia-Pacific 15 percent.
Sales in the Americas dropped 7 percent to $48 million compared to 51.6 million in the same quarter last year. Sales for the fiscal year in the region also slipped 3 percent to $184.9 million, compared to $191.4 million the year before.
The rest of the regions saw sales growth in the quarter and the fiscal year. Sales in Europe, the Middle East and Africa grew to $35.9 million, an increase of 4 percent from $34.6 million in the same period last year. In Asia-Pacific, sales leaped to $12.7 million, up 15 percent from $11 million in fiscal 2016.
For the fiscal year, sales in the Americas slipped 3 percent to $184.9 million; fiscal year total sales in Europe, the Middle East and Africa were up 1 percent to $136.8 million compared to $135.2 million in 2016, and sales in Asia-Pacific jumped 9 percent to $58.8 million, compared to $54 million the year before.