Luckily, there is no indication yet that multi-purpose lubricant and cleanser manufacturer WD-40 Company (NASDAQ: WDFC), headquartered in San Diego, has been impacted by the devastating fires in San Diego. But even before its luck in the fires, things were going well for WD-40. The company posted record sales and earnings for FY 2007, sales were up 7% to $308 million and net income increased 12% to $31.5 million. Diluted EPS rose from $1.66 to $1.83, an increase of just under 10%.

Fourth quarter 2007 activity drove the bulk of WD-40's good numbers. Sales for 4Q were up 5%, net income was up 46% and diluted EPS increased 45%. In part, these great 4Q numbers are a result of WD-40 redesigning its spray lubricant containers to contain a permanently attached straw so users no longer have to hunt endlessly for the stupid little red straw that got lost long ago. CEO Garry Ridge has promised that most WD-40 lubricant products will have permanent straws by the end of 2008. Can't come soon enough.

WD-40's redesign is a smart move and will help counter slowing demand for its products in the U.S. market. This slow down is offset by rising sales in Europe, Latin America, Asia and a 50% sales increase in China.

WD-40 also owns commonly used household cleaning products X-14, Carpet Fresh and Spot Shot. Sales in this business unit are down, not because the products are faulty. They work exceptionally well, precisely because they are full of toxins and chemicals that have proved very effective. Overall, there is a slow consumer movement towards greener, more environmentally friendly household cleaning products. WD-40's cleaning products hardly qualify.

Based on 4Q and FY 2007 results, Ridge expects net sales to grow 7-10% to $329-$339 million in FY 2008, achieving EPS of $1.83-$1.93. The company will pay out its regular dividend of $0.25 per share and will continue its share repurchase program.

Multi-purpose lubricant, cleaning, and consumer products company WD-40 (NASDAQ: WDFC) is posting such good earnings that CEO Garry Ridge recently announced the company has revised FY guidance upwards. Net sales are predicted to grow 7-9% to $307-$313 million. FY EPS are predicted to be $1.70-$1.75 with net income of $29-$30 million. Ridge maintains these are viable numbers despite the capital expenditures necessary for WD-40 to open a direct sales operation in China by late 2007. WD-40 has posted these numbers despite increases in the cost of goods due to increases in the cost of raw materials, and a 10% increase in administrative expenses in 3Q 2007. Advertising and sales expenses are also on the increase by 12% as WD-40 moves into new markets outside the U.S.

WD-40 has no choice but to seek new international markets. Sales in Europe are up 23% in 3Q 2007 and up 17% in Asia/Pacific, not yet including China. These double-digit increases make up for the fact that sales in North America are down 2.5% in 3Q 2007. This decline is caused primarily by a 15% drop in sales of household products, which makes very little sense considering the company's flagship product, WD-40, posted a sales increase of just under 16%, and hand-cleaning products posted an impressive 12% increase. WD-40 makes well-known and widely respected cleaning products such as X-14 for cleaning soap scum and Carpet Fresh for removing spots in carpet. Granted, these products are a bit more expensive than competing brands, but these products unarguably work well and are found in the cleaning cabinets of many U.S. homes. After getting its China facility up and running full speed, perhaps WD-40 needs to turn its attention to convincing American consumers of the value of WD-40 products, not just their price.

Overall, 3Q net sales were up 6.2% and up 8.1% for 1Q-3Q 2007 inclusive. In addition to raising FY guidance, the company announced a $0.25 per share dividend.