WD-40's 2Q beats expectations

WD-40 gets boost overseas in 2Q, explores options for household business

Associated Press

SAN DIEGO (AP) -- WD-40 Co.'s fiscal second-quarter profit slipped 1 percent but still managed to exceed market expectations on sales gains overseas. It also issued a solid forecast for the year and its shares jumped nearly 6 percent in after-hours trading Thursday.

The company, based in San Diego, is best known for its namesake multi-purpose lubricant. It also makes cleaning products such 2000 Flushes toilet-bowl cleaner and Carpet Fresh deodorizer, but said Thursday that it is reviewing its strategic options for the household products business.

WD-40 President and CEO Garry Ridge said that the company's focus is on growing its multi-purpose maintenance products business. In order to focus on that, the company decided last month to evaluate options for its homecare and cleaning products in its Americas segment. He said the process is in the early stages and no decisions have been made.

The company has been trying to offset softer sales in the U.S. with a bigger push in other markets, such as China. That effort, along with improving demand in Europe, helped increase the company's total revenue for the second quarter by 1 percent to $86.7 million. The company also added a specialist product line in 2012 that it expanded during the second quarter, also a boost to sales.

WD-40 said that it earned $10.5 million, or 66 cents per share, for the quarter that ended Feb. 28. That is compared with 10.6, or 65 cents per share, in the same quarter of the prior year when it had more shares outstanding.

Analysts polled by FactSet were anticipating the company would earn 56 cents per share on revenue of $88.3 million.

WD-40 now expects to earn $2.32 to $2.42 per share for its 2013 fiscal year on revenue between $356 million and $370 million. Analysts had forecast earnings of $2.37 per share on revenue of $358.3 million.

The company's shares jumped $3.02 to $55.84 in after-hours trading on the news. Its stock added 95 cents to close regular trading at $52.82.

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