Q1 sales increase 4% for WD-40 Co.
Sales were up, but earnings were down for San Diego-based WD-40 Co.
Sales for the first quarter ended Nov. 30 were $80.9 million, an increase of 4% from the first quarter last year. Net income for the first quarter was $9.1 million, down 4% from the prior fiscal year first quarter.
"We had a solid performance in the first quarter that reflects the hard work and focus we have put into our four strategic initiatives, and that continues to serve us well," said Garry O. Ridge, WD-40 president and CEO. "As it relates to the geographic expansion strategic initiative, we have been successful in building our base business across the globe and we have seen robust growth in many international markets, while maintaining our gross margins above our target of 50%."
America’s segment first quarter sales were $39.2 million, down 10% compared to the first quarter of last fiscal year. Most of the company’s first-quarter sales — 62% — were from outside the U.S.
"The solid growth we have seen in markets like China, where we doubled our sales in the first quarter, is a result of us building our core business coupled with significant promotional activity aimed at building distribution and increasing end-user awareness."
WD-40 Company expects fiscal year 2011 net sales to grow 5.7 % to 10.4% to the range of $340 to $355 million.
NPD research: Snow blowers surge in 2010
A series of snowstorms in early 2010 boosted snow blower/throwers sales past every other category of outdoor power equipment, according to research released by The NPD Group, a market research firm based in Port Washington, N.Y.
In the 12 months ending November 2010, $5.5 billion worth of outdoor power equipment items and 38 million units were sold in retail, according to NPD’s Consumer Tracking Service. These include chain saws, trimmers, mowers (walk-behind & riding), leaf blowers, pressure washers and snow throwers/blowers.
Among these product categories, snow throwers/blowers were the number one growing item, up 24% in units, and 14% in dollars, in the 12 months ending November 2010, compared to the same time the previous year.
The East/South Central region of the U.S. showed four times the sales of snow throwers/blowers during the 12-month period compared to the corresponding period ending November 2009. The West North Central, South Atlantic, Middle Atlantic, and New England regions all experienced double-digit growth in snow thrower/blower sales.
“Much of the snowfall of the early part of 2010 came unexpectedly, and seemed constant in some places, driving consumers to get that snow blower they had been putting off, particularly the aging boomer population. With storm after storm, there’s only so much shoveling and back pain we can endure,” said Peter Goldman, president of NPD’s home division.
Decra Roofing Systems joins HomeSphere
Decra Roofing Systems and Lakewood, Colo.-based HomeSphere entered a joint agreement to offer Decra stone coated steel roofing products to builders using the HomeSphere network.
Decra joins more than 75 manufacturing brands currently using HomeSphere’s BRI lead generation and marketing program to produce new builder leads and strengthen existing business.
“This partnership provides a number of new opportunities for over 1,100 builder customers, as well as for Decra to grow and strengthen its relationship with the homebuilding industry,” said Jeffrey Jacobs, Vice President for Decra.
BRI is a builder rebate management application serving the residential construction industry. Manufacturers use the BRI service to open sales channels with thousands of homebuilders and remodeling contractors, gaining inroads to new accounts and building recognition for their products and services. Builders, on the other hand, gain product knowledge and manage their cash-producing rebates, helping them to improve their bottom line.
Decra sells stone-coated steel roofing material available in a variety of unique profiles and colors.