WD-40 Misses

WD-40 (WDFC Quote) missed its fourth-quarter earnings target, citing rising marketing spending.

The San Diego-based lubricator made $6.3 million, or 37 cents a share, for the quarter ended Aug. 31. That's down from the year-ago $10.5 million, or 63 cents a share. Sales fell to $75.2 million from $76.3 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 38-cent profit on sales of $76.8 million.

"Our fourth quarter didn't track along in proportion with our historical sales patterns as a result of the timing of promotions and new product introductions," CEO Garry O. Ridge said. "We also invested more in marketing to support innovations introduced over the past year. We expect that investment to help our brands going forward."

Global sales of the lubricants WD-40 and 3-In-One Oil fell 1.2% from a year ago to $50.2 million.

"We only see one market, and that is the global marketplace," Ridge said. "That is why we continue to invest in innovations that will not only help maintain our base business, but will also fuel future growth in our existing markets and allow us to enter new markets."