For WD-40, sales up and earnings down in Q1
Financial uncertainty cast a shadow over the results of San Diego-based WD-40 Co., which posted mixed results in the first quarter of 2012.
The lubricant and all-purpose maintenance product manufacturer posted net sales for the quarter ended Nov. 30 of $84.9 million, up 5% from the same period last year. Earnings, however, declined 25% to $6.8 million.
"The Americas and Asia Pacific regions experienced growth in the first quarter driven by sales of the multi-purpose maintenance products," said Garry Ridge , WD-40 president and CEO. "We continue to see economic uncertainty in Europe, and the results in the first quarter reflect some of this uncertainty."
First-quarter multi-purpose maintenance products sales, which include WD-40, 3-IN-ONE, Blue Works and the WD-40 Specialist product line, were $70.8 million, up 6% from the prior-year fiscal quarter. Homecare and cleaning products sales, which include all other brands, were $14.1 million for the first quarter, down 2% from the prior-year fiscal quarter.
"During the quarter we had higher-than-normal investments in advertising and promotions due to some promotional timing and activities in support of several key marketing initiatives," Ridge said. "We expect these investments to return to our normal levels during the remainder of the year."