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WD-40's fiscal 4Q profit below expectations

Monday, 15 Oct 2012 | 5:20 PM ET

SAN DIEGO -- WD-40 Co. said its fiscal fourth-quarter profit dropped 11.9 percent because sales in Europe slipped as customers delayed buying its lubricant and cleaning products.

WD-40 makes its namesake spray lubricant, along with related cleaning products. It earned almost $9 million, or 56 cents per share, for the quarter that ended Aug. 31. That was down from $10.2 million, or 61 cents per share, during the same period last year.

Revenue fell 6.5 percent to $84.9 million.

Analysts expected profit of 72 cents per share on revenue of $95.5 million.

WD-40 gets more than half of its sales in the Americas, and about one-third from Europe. While sales in the Americas rose 1 percent for the quarter, they fell 17 percent in Europe. Sales in Asia fell 3 percent.

The company said revenue declined because sales it expected to book in the quarter were pushed into the fiscal first quarter of 2013 instead, especially in Europe.

"We are starting to see some recovery in the markets that were weakest in the past year and remain confident that our ability to introduce and grow our core product in new markets and bring new products into mature markets will meet our expectations," said Garry Ridge, president and CEO.

The company said it has developed a "WD-40 Bike" product aimed at cyclists and bike mechanics.

WD-40 expects fiscal 2013 sales of $356 million to $370 million. It predicted net income of $36.5 million to $38 million, for earnings per share of $2.31 to $2.40.

Analysts forecast earnings of $2.56 per share, on revenue of $369.3 million.

WD-40 shares fell 39 cents to close at $51.34.

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