WD-40 eases up its Q2 profit

Foreign currency exchange rate fluctuations have had a negative impact on sales for San Diego-based WD-40, but still the company produced a net income of $13.7 million, up 21% compared with the same quarter last year.

The company’s WD-40 Specialist brand showed particular promise, up 20% globally during the second quarter.

Net sales were down 2.9% to $94.6 million. Net income, however, increased to $13.7 million, up from $11.3 million.

Garry Ridge, WD-40 company's president and CEO, pointed to the diversity of the business as a reason for its bottom-line resilience.

“Looking forward to the second half of our fiscal year, I believe we are in a good position to finish the year strong,” he added. “As long as we continue to execute our strategic initiatives and stay focused, our hard-working tribe will deliver a solid finish to fiscal year 2016.”

Q2 Net Sales

2016: $94.6 million

2015: $97.3 million

% decline: (2.9%)

Q2 Net Income

2016: $13.7 million

2015: $11.3 million

% growth: 20.6%

Net sales of maintenance products, which are considered the primary growth focus for the company, decreased 2% in the second fiscal quarter when compared with the prior fiscal year period.

Net sales of homecare and cleaning products decreased 8% in the second quarter when compared with the prior fiscal year period. The homecare and cleaning products, particularly those in the U.S., are considered harvest brands providing healthy profit returns to the company and are becoming a smaller part of the business as the company moves its emphasis to sales of multi-purpose maintenance products.

For the year, the company expects net sales growth of 2% to 4%, with net sales expected to be $385 million to $394 million.