WD-40 fiscal 4Q earnings climb nearly 64 percent

WD-40 fiscal 4th quarter earnings jump nearly 64 percent on lower costs and steady sales

• On 5:01 pm EDT, Wednesday October 14, 2009

SAN DIEGO (AP) -- Consumer products maker WD-40 Co. said Wednesday its fiscal fourth-quarter profit soared nearly 64 percent, helped by lower costs and slightly higher sales.

Net income rose to $7.6 million, or 46 cents per share, for the three months ended Aug. 31. That compares with $4.7 million, or 28 cents, during the same period last year.

Sales edged up 1.1 percent to $77.8 million from $34.5 million.

Analysts surveyed by Thomson Reuters, on average, expected a profit of 40 cents per share on revenue of $71.7 million. Those estimates generally exclude one-time items.

For the full fiscal year, WD-40's earnings slid nearly 5 percent to $26.3 million, or $1.58 per share, from $27.6 million, or $1.64 a share.

During the year, foreign currency exchange rates hurt net sales by $30 million and net income by $4.5 million, the company said.

Garry Ridge, the company's president and CEO, said WD-40 made strategic decisions during the year that should benefit the company in the long term.

"These include diverting R&D resources to our multipurpose maintenance products and adjacent categories, exploring the opportunities for the WD-40 brand, developing our business through acquisitions and strategic partnerships, and continuing our efforts to expand geographically around the world," he said in a statement.

Looking ahead, the company said it expects fiscal year 2010 earnings of $1.80 to $1.95 per share, based on an estimated 16.8 million shares outstanding, and sales growth of 2 percent to 9 percent, to $298 million to $318 million. Analysts expect earnings of $1.74 per share on revenue of $299.1 million.

WD-40 shares rose 59 cents, or 1.9 percent, to close at $31.83. After-hours, they rose $1.61, or 5 percent, to $33.44.

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