Profits slide at WD-40
WD-40 Company reported second quarter net sales decreased just 1% to $100.0 million from second quarter 2019 sales of $101.3 million.
Sales for the first half of the fiscal year are down 2% to $198.6 million.
During the quarter, sales in the Americas fell 7% to $46.8 million. Second quarter sales in Europe decreased 2% to $41.8 million as Asia-Pacific sales declined 30% to $11.5 million.
The San Diego-based maintenance products manufacturer reported a net income of $14.3 million for the quarter, dropping 10% percent compared to a net income of $16 million for the same period a year ago.
WD-40’s net income for the first six months of its fiscal year fell 9% to $26.5 million.
During the quarter, WD-40 drew an additional $80 million under its line of credit agreement, bringing the balance on the line of credit to approximately $149 million.
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The bottom line: Profits for the second quarter 2020 fall 10% to $14.3 million.
What the CEO said: "Our total sales declined in the second quarter is primarily due to a 31% decline in sales within the Asia-Pacific segment," said Garry Ridge, WD-40 Company chairman and CEO. "This decline was mainly driven by a significant decrease in maintenance product sales in China due to disruptions related to the COVID-19 outbreak and resulting health crisis. Though the impact in the second quarter was significant, we are pleased that things appear to be slowly returning to normal for our tribe members in China."
"We know we will probably face some challenges in the coming weeks and months as we continue to operate a global business through these volatile and uncertain times. But we are a strong tribe and an enduring company. We are confident that we are well positioned to navigate this storm as it unfolds from both a financial and operational perspective and emerge on the other side a stronger company.”
What the CFO said: “We believe our efficient business model and the recent steps we have taken to strengthen our balance sheet leave us positioned to manage our business through this crisis as it continues to unfold," said CFO Jay Rembolt.
Company info: WD-40 Company’s complete second quarter 2020 report can accessed here.
Sales for the first half of the fiscal year are down 2% to $198.6 million.
During the quarter, sales in the Americas fell 7% to $46.8 million. Second quarter sales in Europe decreased 2% to $41.8 million as Asia-Pacific sales declined 30% to $11.5 million.
The San Diego-based maintenance products manufacturer reported a net income of $14.3 million for the quarter, dropping 10% percent compared to a net income of $16 million for the same period a year ago.
WD-40’s net income for the first six months of its fiscal year fell 9% to $26.5 million.
During the quarter, WD-40 drew an additional $80 million under its line of credit agreement, bringing the balance on the line of credit to approximately $149 million.
###
The bottom line: Profits for the second quarter 2020 fall 10% to $14.3 million.
What the CEO said: "Our total sales declined in the second quarter is primarily due to a 31% decline in sales within the Asia-Pacific segment," said Garry Ridge, WD-40 Company chairman and CEO. "This decline was mainly driven by a significant decrease in maintenance product sales in China due to disruptions related to the COVID-19 outbreak and resulting health crisis. Though the impact in the second quarter was significant, we are pleased that things appear to be slowly returning to normal for our tribe members in China."
"We know we will probably face some challenges in the coming weeks and months as we continue to operate a global business through these volatile and uncertain times. But we are a strong tribe and an enduring company. We are confident that we are well positioned to navigate this storm as it unfolds from both a financial and operational perspective and emerge on the other side a stronger company.”
What the CFO said: “We believe our efficient business model and the recent steps we have taken to strengthen our balance sheet leave us positioned to manage our business through this crisis as it continues to unfold," said CFO Jay Rembolt.
Company info: WD-40 Company’s complete second quarter 2020 report can accessed here.