WD-40 Co. reported net income of $6.8 million for its first quarter ended Nov. 30, down 25 percent from the $9 million in net income for the like quarter of 2010.
Net sales for the quarter were $84.9 million, up from $80.9 million for the like quarter of 2010.
The company said increased advertising and promotional costs reduced profits in the most recently completed quarter.
WD-40 said it expects fiscal 2012 net sales of $353 million to $370 million, and net income of $37.2 million to $39.2 million, translating to $2.28 to $2.40 per diluted share based upon 16.3 million weighted average shares outstanding.
Gross margin this year should be close to 50 percent, the San Diego-based company said.
Last month, WD-40 increased its quarterly cash dividend from 27 to 29 cents per share. At the company’s last board meeting in December, it authorized a stock buyback of up to $50 million this year.
— Mike Allen