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.

WD-40 (WDFC) unaffected by San Diego fires originally appeared on BloggingStocks on Wed, 24 Oct 2007 15:17:00 EST. Please see our terms for use of feeds.