WD-40 Q1 profit declines 3%

Sales of WD-40 lubricant were resilient during the recession, and the WD Co.’s  margins had been improving of late on manufacturing efficiencies. But in the latest quarter ending November 30, gross margin fell to 50.9% from 51.4%. WD-40 reported a profit of US$9.1 million, or US$0.53 cents a share, from US$9.4 million, or US$0.56 cents a share, down by 3% from a year ago. The company also has benefited from its expansion overseas and new product launches. Revenue grew 4.1% to US$80.9 million. Sales of the company’s multi-purpose maintenance products, which include WD-40 and 3-In-One, increased 10%, while sales of all other brands fell 16%. (January 11, 2011)