WD-40 Company sales decline 4 percent
WD-40 Company said its total net sales for its fiscal first quarter were $89.2 million, a decrease of 4 percent compared to the prior year fiscal quarter.
Net income for the quarter was $11.8 million, a decrease of 3 percent from the prior year fiscal quarter. Diluted earnings per share were 82 cents, compared to 83 cents in the prior year fiscal quarter.
"As a global company that generates nearly 40 percent of its sales in currencies other than the U.S. dollar, foreign currency exchange headwinds continue to have an impact on our reported results," said Garry Ridge, WD-40 Company's president and chief executive officer. "Even though the global nature of our business exposes us to some currency risk, our geographically diversified business also acts as a natural hedge which can cushion us from the impact of localized events. At any given time, depending on what is going on in a particular region, some of our markets will over perform while others may underperform. While we expect we will continue to see fluctuations in the performance of certain markets quarter to quarter, our long-term growth plans remain unchanged," concluded Ridge.
The decline in net sales in the Americas in the first quarter was primarily driven by lower maintenance product sales in the United States and Latin America. In the United States, in the comparable period last fiscal year, sales were higher than normal due to the initial launch of the WD-40 EZ-Reach Flexible Straw product offering. In Latin America, maintenance product sales were lower primarily due to the uncertain business climate in Mexico.