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WD-40 Co. Posts 53 Percent Drop In 2Q Earnings

The Associated Press

SAN DIEGO (AP) — Consumer products maker WD-40 Co. said Wednesday its fiscal second-quarter profit tumbled 53 percent on weaker sales to miss Wall Street expectations, sending the company's shares sharply lower in aftermarket electronic trading.

WD-40 earned $4.1 million, or 25 cents per share, compared with $8.7 million, or 51 cents per share, in the same quarter a year earlier. The latest quarter was hurt by a $2.8 million impairment charge for its Carpet Fresh asset and the stronger dollar's negative effect on international sales.

Revenue fell by 22 percent to $61.8 million from $78.9 million.

Results fell below the average forecast of analysts polled by Thomson Reuters, who had predicted profit of 27 cents per share and revenue of $71.4 million.

In the quarter, sales in the Americas fell by 11 percent while European business dropped 34 percent. The company saw sales decline by 31 percent in the Asia-Pacific region.

For fiscal 2009, WD-40 expects to post sales of $279 million to $292 million and earnings of $22.5 million to $25.8 million, or $1.35 to $1.55 per share.

Analysts are forecasting higher sales and earnings of $311.8 million and $1.63 per share.

WD-40 also declared a 25-cent per share dividend payable on April 30 to shareholders of record as of April 16.

Shares of San Diego-based WD-40 rose by $1.21, or 5 percent, to close earlier at $26.20, but tumbled $2.75, or nearly 11 percent, to $23.45 in aftermarket electronic trading after the results were released.