WD-40’s Q4 results a mixed bag
WD-40 Co. reported growth in net sales for the fourth quarter ended Aug. 31, though net income was down on a year-over-year basis.
Net sales saw an increase of 10% from 2012’s fourth-quarter sales, with year-to-date sales up 8% year-over-year at $368.5 million. Multi-purpose maintenance products, the company’s main product category, saw an even bigger boost, with a 16% increase to $81.6 million. Homecare and cleaning products were down 16% to $11.9 million, though the company is focusing less on this category as multi-purpose maintenance products experience increased growth.
Meanwhile, net income was down 9% at $8.1 million, though the year-to-date income of $39.8 million was up 12% from the prior fiscal year.
"We have been celebrating our 60th anniversary and are pleased to report a record year for the company during this important milestone," said Garry Ridge, WD-40 president and CEO. "Our tribe’s continued focus on our key strategic initiatives and thinking big about our future has paid off in spades with great results across all trading blocs. We continue to see ourselves as a growth company, and our performance supports that."
The company cited strong growth in the EMEA region, as well as its Asia Pacific business, which has experienced steady growth since 2009. Ridge also highlighted the potential of its China operations, where WD-40 experienced "a record year" but expects "some volatility along the way due to promotional timing, the fluctuations of building distribution, shifting economic growth patterns and varying industrial activities."
USG teams up with Boral Limited in joint venture
USG Corporation announced its 50/50 joint venture with Boral Limited, to be named USG Boral Building Products, as part of a strategic move to synergistically blend their branding, geographic impact and expertise in the burgeoning plasterboard market in Asia, Australasia and the Middle East.
The venture will include Boral’s Gypsum division, which includes its plasterboard operations in Australia and Asia, as well as USG’s Asian and Middle Eastern businesses. Additionally, USG will contribute exclusive access to its competitive products and technologies.
“We are excited by the prospects for profitable growth through this strategic partnership," said USG chairman, president and CEO Jim Metcalf. "We have long been focused on our strategic plan to diversify our earnings and differentiate our business through innovation. The joint venture with Boral, Asia’s leading plasterboard manufacturer and distributor, gives USG the reach to immediately expand our world-leading building products operations outside North America, and enables both companies to more effectively capitalize on market opportunities in some of the world’s highest growth construction markets."
New technologies will be introduced over the course of the next two years by the joint venture, which will self-fund its investment of $50 million. Synergies are expected to exceed the initial pricetag within three years.
Frederic de Rougemont, CEO of Boral Gypsum, will be the appointed CEO of the joint venture.
Paige Wittman promoted to VP sales at Andersen
Andersen Corporation has promoted Paige Wittman, previously director of sales for the East Division, to VP sales.
In her newly created role, Wittman will oversee nationwide sales for all Andersen window and door operations.
“Paige brings energy and enthusiasm to this new role along with her drive for results,” said Andersen chief sales and marketing officer Sal Abbate. “She has been a big part of our Northeast success this year and I look forward to expanding her leadership across our entire dealer network.”
In her time at Andersen, Wittman has helped develop the Accessories business unit and managed sales and strategic accounts, as well as the Western Division. Additionally, she helped roll out the successful Andersen 100 Series, created a new business planning process for dealers, drove local promotions and transitioned the New England market from distributor Brockway-Smith.
Previous to her tenure at Andersen, Wittman worked as director of retail & dealer development at Polaris Industries.