WD-40 turns in strong Q3
Net sales of maintenance products, considered the primary growth focus for the company, increased 11% in the third quarter.
WD-40, the maintenance, cleaning, and homecare products manufacturer, reported third quarter 2018 net sales of $107.0 million, a 9% increase from 2017 net sales of $98.1 million for the same period a year ago.
The San Diego based manufacturer also reported year-to-date total net sales were $305.9 million, up 8% from year-to-date sales of $283.9 million for the first 3 quarters of 2017.
The company reported a net income of $16.1 million for the third quarter, a 12% increase compared to the third quarter 2017. For the first three quarters of the year, WD-40 posted a net income of $43.6 million, up 13% from the prior period.
“We had a solid quarter and are pleased that we achieved both sales and earnings results which reflect new record highs for the Company,” said Garry Ridge, WD-40 president and CEO. “Our maintenance products delivered solid sales increases in the third quarter including 10% growth of WD-40 Multi-Use Product and 16%growth of WD-40 Specialist.”
Net sales of maintenance products, considered the primary growth focus for the company, increased 11% in the third quarter when compared to the prior year fiscal period. This sales growth was primarily attributable to increased sales of WD-40 Multi-Use Product within the Americas and EMEA segments. Sales of homecare and cleaning products decreased 12% for the quarter, however.
WD-40 also noted that it is seeing the impact of higher commodity prices, which have begun to deteriorate the manufacturer’s gross margins in all 3 of its operating segments.
As a result, the company has made some price increases to ensure that its “gross margin remains in-line,” Ridge said.
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