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Shares of WD-40 fall after company says higher commodity prices hurting margins

Published: 01:02 07 Apr 2018 AEST

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WD-40 gave updated forecast on full-year earnings

Shares of WD-40 Co.(NASDAQ:WDFC), which makes multipurpose lubrication products, declined after the company said higher commodity prices are eroding its margins.

The stock fell 5% to US$126.50 in morning trading.

“We are seeing the impact globally of higher commodity prices, which have begun to deteriorate our gross margins,” Chief Executive Officer Garry Ridge said in the statement.

Still, WD-40 reported a 20% gain in fiscal second-quarter profit to US$14.8mln, helped by sales of maintenance products. The company now forecasts full-year profit of US$56.6mln to US$57.5mln.

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