WD-40 fourth quarter sales fall below estimates

Lower-than-expected fourth-quarter results were reported by lubricants maker WD-40 Co. Lower sales in Europe, which accounts for one-third of total sales, was cited as the main factor in the company’s lackluster performance, with sales tumbling 17% to US$28.7 million.
Softness in some industries like construction and manufacturing, which represent key customer bases for the company, has affected WD-40’s results. The company said it expects more fluctuations in costs as global economic volatility and the turbulent business conditions in Europe are expected to continue.
In 2013, WD-40 forecast earnings of between US$2.31 and US$2.40 per share on sales of between US$356 million and US$370 million, but according to Thomson Reuters, analysts were considering a profit of US$2.56 per share on revenue amounting to US$369.3 million.
 
Whereas analysts had expected earnings of 70 US cents per share on revenue of US$93.7 million, the company’s fourth-quarter profit fell to US$9.0 million, or 56 US cents per share. The company’s 2011 profits were US$10.2 million or 61 US cents per share.
 
The company’s most popular product is lubricant WD-40, a spray lubricant that protects surfaces from moisture. (October 16, 2012)