WD-40 Co. on July 2 said its net sales for the third quarter, ending May 31, totaled $82.1 million, up 5.8 percent from 2007s third quarter. Net income rose 5.6 percent, to $8.1 million, in the quarter.
Earnings per share were 49 cents in the third quarter, compared to 45 cents per share in the same quarter a year earlier. San Diego-based WD-40s fiscal year runs from Sept. 1 to Aug. 31.
Global sales of the lubricants WD-40 and 3-in-One were up 8.2 percent to $61.2 million, compared to 2007s third quarter.
Total sales for the third quarter were 59 percent from the Americas, 32 percent from Europe and 9 percent from Asia Pacific.
In the Americas, sales for the third quarter rose 5.8 percent compared to the year-earlier period. During the quarter, we saw a positive impact from our conversion to the Smart Straw delivery system on the WD-40 brand in the U.S., said Garry Ridge, WD-40 president and chief executive officer. We were able to implement the conversion to Smart Straw smoothly, and are now moving into the promotional period for that product.
Third quarter gross margin was 46.5 percent of sales compared to 47.5 percent in the same period last year, which WD-40 said reflected higher underlying cost of goods.
Our cost of goods have been impacted by the general increases in commodity prices, particularly the sharp increases in oil and steel, said Ridge. We are working hard to minimize the impact of these cost increases on our gross margin through a combination of price increases, innovation and cost reduction strategies around the globe.”