Household chemicals manufacturer WD-40 Company (WDFC) reported positive top and bottom line results for its second quarter 2018, with profit spiking double digits and sales increasing by single digit. The results were positively impacted by growth from the company’s EMEA and Asia-Pacific segments. Profit increased 19.4% to $14.8 million or $1.05 per share, while sales increased 4.8% year-over-year to $101.2 million.
On a segment basis, as a percent of revenue, Americas was 44%, EMEA 39%, Asia-Pacific 17%. Americas sales were relatively flat due to the declining sales of homecare and cleaning products in the U.S. However, EMEA and Asia-Pacific reported 9% growth, helped by higher sales of maintenance products in the EMEA direct markets and Asia-Pacific segment seeing double digit sales increases in China and Australia.
Outlook
WD-40 Company revised its guidance for fiscal 2018, and now sees net sales growth of between 7% and 9% translating to sales of $407 million and $415 million versus the previous sales outlook of $396 million to $403 million. EPS is now targeted to be between $4.07 and $4.14 compared to the prior estimate of $3.91 to $3.98.