Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-forty Company's 3rd Quarter Fiscal Year 2018 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen only mode. At the end of the prepared remarks, we will conduct a question and answer session.
I would now like to turn the presentation over to the host for today's call, Ms. Wendy Kelly, Director of Investor Relations and Corporate Communications. Please proceed.
Thank you. Good afternoon and thanks to everyone for joining us today. On our call today are WD-forty Company's President and Chief Executive Officer, Gary Ridge and Vice President and Chief Financial Officer, Jay Remboldt. In addition to the financial information presented on today's call, we encourage investors review our earnings presentation, earnings press release and Form 10 Q for the period ending May 31, 2018. These documents are available on our Investor Relations website at investor.
Wd40company.com. A replay and transcript of today's call will also be made available at that location shortly after this call. On today's call, we will discuss certain non GAAP measures. The descriptions and reconciliations of these non GAAP measures are available in our SEC filings as well as our earnings presentation. As a reminder, today's call includes forward looking statements about our expectations for the company's future performance.
Of course, actual results could differ materially. The company's expectations, beliefs and projections are expressed in good faith, but there can be no assurance that they will be achieved or accomplished. Please refer to the risk factors detailed in our SEC filings for further discussion. Finally, for anyone listening to a webcast replay or reviewing a written transcript of this call, please note that all information presented is currently current only as of today's date, July 10, 2018. The company disclaims any duty or obligation to update any forward looking information whether as a result of new information, future events or otherwise.
With that, I'd now like to turn the call over to Gary.
Thanks, Wendy. Good day, everyone, and thanks for joining us for today's conference call. Today, we reported net sales of $107,000,000 for the Q3 of 2018 compared to $98,200,000 in the 3rd period last year. This reflects an increase of 9% year over year. Foreign currency exchange rates favorably impacted our sales in the 3rd quarter.
On a constant currency basis, we grew net sales by 5% year over year. Net income for the Q3 was $16,100,000 compared to $14,400,000 in the Q3 of last fiscal year, an increase of 12% period over period and diluted earnings per share for the Q3 were $1.15 compared to $1.02 for the same period last fiscal year. Now let's start our discussions with about our strategic initiatives. As most of you will recall, our long term revenue target is to drive consolidated net sales to approximately $700,000,000 in revenue by the end of fiscal year 2025 and to do so while following our 50fivethirtytwenty five business model. We'd like to remind investors that those long term targets are guideposts, not guidance.
We acknowledge that our anticipated 2025 targets are aspirational, but we continue to believe if we keep our focus in the right places, we can be successful in moving towards these targets. Our strategic driver number 1 is to grow WD-forty multiuse product. Our most important strategic driver is to take the blue and yellow can with a little red top to more places for more people who will find more uses more frequently. In order to achieve our target of $530,000,000 of multipurpose product revenue, we need to continue our steady building of the multipurpose product across all markets through both geographic expansion as well as through innovation. In the Q3, global sales of WD-forty multiuse product were $82,500,000 reflecting an increase of 10% compared to the Q3 of last year.
Year to date net sales of WD-forty Multi Use Product were up 8% compared to last year. In our developed markets, we continue to drive revenue growth through innovation of our flagship product, which includes premiumization. As part of our premiumization strategy, we continue to successfully convert WD-forty Multi Use Product end users to our more innovative Smart Straw and easy reach delivery systems. In developing and emerging markets, we continue to build brand awareness among end users through product sampling, specifically targeted end user groups in countries identified as key growth opportunities. As we've shared with investors before, we're investing an additional $1,000,000 in brand building this fiscal year to support initiatives like these.
Our strategic driver number 2 is to grow the WD-forty Specialist product line. Our target under this initiative is to grow the WD-forty Specialist product line through continued geographic expansion as well as by developing new products and product categories. Our focus is on building market awareness and distribution of WD-forty Specialist in order to achieve our stated goal of $100,000,000 in revenue by the end of 2025. In the 3rd quarter, global sales of WD-forty Specialist were $8,500,000 up 16% compared to the Q3 of last year. Year to date net sales of specialists were $23,400,000 up 26% compared to last year.
We are optimistic about the long term opportunities for WD-forty Specialist. However, there may be some volatility in sales levels along the way due to the timing of promotional programs as we build out distribution and various other factors that come with building out a new product line. Strategic initiative number 3 is to broaden our product and revenue base. Our goal under this initiative is to leverage the recognized strengths of WD-forty Company to derive revenue from existing brands as well as from new sources and products. Strategic initiative number 3 includes maintenance products of 3 in 1, WD-forty bike and GT85, but also includes home care and cleaning product brands like Spot Shot, Lava in the Americas, 1,001 in EMEA and Novak and Solvault in Asia Pacific.
We believe we continue we will continue to nurture and grow the products included under this initiative and expect their combined revenue to reach approximately $70,000,000 by the end of fiscal year 2025. In the Q3, global sales of products included under this initiative were $12,100,000 reflecting an increase of 11% compared to the Q3 of last year. Year to date net sales of products included under this initiative were up 6% compared to year. WD-forty BIKE had a particularly strong 3rd quarter with solid sales growth across all three trading blocks. Much of the success we've seen with bike has been achieved through our growing digital presence.
As I mentioned a few moments ago, we're investing an additional $1,000,000 in brand building this fiscal year and a sizable portion of that investment is being used support and enhance our global digital presence where products like WD-forty bike and other specialist products thrive. Strategic driver number 4 is to attract, develop and retain outstanding tribe members. Our goal under this initiative is to attract, develop and retain talented tribe members to grow our tribe member engagement to greater than 95%. At the end of the Q3, we had 467 tribe members around the globe. To support our tribe's culture, we launched our leadership lab program back in 2011 to develop our tribe, sharpen skills and ultimately build our company's bench strength.
Today, our leadership lab is present in all three trading blocks and over 9.20 attendees have engaged in more than 21,000 hours of learning this program. We recently announced our next generation approach to Leadership Lab, a learning laboratory that is a global program for people development. These learning tools delivered by our tribe, for our tribe are excellent examples of our continued commitment to our thriving global workforce. Additionally, I'm happy to share with you that we continue to make progress on our plans for renovating a new building to house our U. K.-based tribe members and we expect to move the tribe to this new building in the second half of fiscal twenty nineteen.
Finally, our 5th strategic initiative is operational excellence. Under our goal under this initiative is best summarized by one of our core values here at WD-forty Company making it better than it is today. We measure ourselves against the operational excellence initiative by executing against our fifty fivethirtytwenty five business model and by making improvements to processes and systems while safeguarding our brands. Volatile commodity prices, particularly those for crude oil have negatively impacted our gross margins recently, but over the long term our 50five-thirty-twenty five business model guides our business decisions. Accordingly, we have recently made some proactive price increases to ensure our gross margin will remain within our target ranges over the long term.
Although some of these price rises were in effect prior to the end of Q3, in the Americas, the price increases just went into effect in June. As a result, we expect we will begin to see the effect of these price increases reflected in our gross margin in the 4th quarter. That completes our update on the strategic initiatives. So let's move on to the little more details around our 3rd quarter results starting with sales. As I mentioned earlier, consolidated net sales were $107,000,000 in the 3rd quarter, up 9% versus the Q3 last year.
Translation of our foreign subsidiary results from their functional currencies to the U. S. Dollar had a favorable impact on sales. On a constant currency basis, total net sales would have been $102,600,000 an increase of 5% compared to last year. This is what we refer to as translation related impacts and it affects reported results from Canada, Australia, China and the EMEA segment.
In addition, we experienced about a 330,000 unfavorable transaction related impacts in EMEA, which slightly offset the impacts of translation. So in total, changes in foreign currency exchange rates increased our net sales by about $4,100,000 in the 3rd quarter. Now we'll take a closer look at the individual segments and we'll start with the Americas. Net sales in the Americas, which includes the United States, Latin America and Canada increased to $53,000,000 in the 3rd quarter, up about 8% from last year. Year to date sales in the Americas were up 5% compared to last year.
Sales of maintenance products increased 12% or $5,000,000 in the Americas largely due to higher sales of maintenance products in the U. S, Latin America and Canada. Maintenance product sales in the United States increased 6% in the 3rd quarter, primarily due to the timing of customers' orders as well as a 12% increase in the sales of WD-forty EZ Reach. In addition, maintenance product sales were up 34% in Latin America and 39% in Canada, mostly due to the timing of customer orders and the successful promotional programs that continue in both regions. We estimate that sales of maintenance products in the Americas were up approximately $2,000,000 in the current quarter due to certain customers buying extra product in advance of the price increase, which went into effect in June.
As a reminder, our maintenance products exclude our home care and cleaning products. Sales of our home care and cleaning products in the Americas decreased 18% in the Q3 compared to the prior year largely due to lower sales of 2,000 Flushes, Spot Shot and Carpet Fresh. Now we'll move over to EMEA. Net sales in EMEA, which includes Europe, the Middle East, Africa and India increased to 39 point $6,000,000 in the 3rd quarter, up 15% from last year. Year to date, net sales in EMEA were up 13% compared to last year.
EMEA reported results in the 3rd quarter were positively impacted by foreign currency exchange rates. On a constant currency basis, sales in EMEA increased by 4% compared to last year. As you know, we sell into EMEA through a combination of direct operations as well as through marketing distributors. Net sales in EMEA Direct Markets, which accounted for 66% of the region's sales, increased 19% during the quarter to US26.1 million dollars This increase was a result of increased sales of maintenance products in the region and due to foreign currency exchange rates, new distribution and higher levels of promotional activity. Net sales in EMEA distributor markets, which accounted for 34% of the region sales increased 9% during the quarter to 13,500,000 dollars This increase is primarily due to the timing of customer orders of WD-forty multi use products in Northern Europe.
Partially offset these increases was a 7% decline in sales in Russia due to the continued instability in the region. Russian sales during the quarter were also impacted due to restrictions that were placed on shipments of certain products into Russia during the World Cup. These continued challenges in Russia are preventing the distributor market from realizing even higher levels of growth year over year. Now we'll go down to Asia Pacific. Consolidated net sales in Asia Pacific, which includes Australia, China and other countries in the region, decreased to $14,400,000 in the 3rd quarter, down 2% from last year.
Year to date net sales in Asia Pacific were up 3% compared to last year. Asia Pacific's reported results in the 3rd quarter were positively impacted by foreign currency exchange rates. On a constant currency basis, sales in Asia Pacific decreased by 5% compared to last year. In Australia, net sales in U. S.
Dollars were 4 point $7,000,000 in the 3rd quarter, up 5% compared to last year. Changes in foreign currency exchange rates did not have a significant impact on sales for Australia in the period. This increase in sales was driven primarily by successful promotional activities and the expanded distribution of WD-forty Specialist product line in Australia. In our Asia distributor markets, net sales were 5 point $5,000,000 in the quarter, down 17% compared to last year. Our marketing distributor business in Asia Pacific has been negatively impacted due to the transitioning of 3 major marketing distributor partners in the region.
This transition has caused a disruption in the region, but we believe that we are through the worst part of that transition and that the region will return to growth in the Q4. Our Asian distributor markets are not impacted by currency since we sell our products in U. S. Dollars in the region. In China, net sales in U.
S. Dollars were $4,200,000 in the 3rd quarter, up 17% compared to last year. Changes in foreign currency exchange rates had a positive impact on these sales. On a constant currency basis, sales would have increased 8% period to period. The increase in sales was primarily due to successful promotional programs that are ongoing and conducted during the Q3 of this year.
We remain optimistic about our long term opportunities in China, although we do expect volatility along the way due to the timing of promotional programs, the building of distribution, shifting up economic patterns and varying industrial activities. Now that's it for me. I'm going to pass over to Jay who will continue the review of the financials.
Thanks, Gary. First, let's review the fifty fivethirtytwenty five business model. These are the long term targets we use to guide our business. As you may recall, the 55 represents gross margin, which we target to be at 55 percent of net sales. The 30 represents our cost of doing business, which is our total operating expenses, excluding depreciation and amortization.
Our goal is to drive our cost of doing business over time toward 30% of net sales. And finally, the 25% which represents EBITDA. Well, now let's look at the 55% or our gross margin. In the Q1, our gross margin was 54.8% compared to 55.3% last year. This represents a decline of 50 basis points and for the first time in a few years that our gross margin has dipped below our long term target of 55%.
Changes in major input costs, which include petroleum based specialty chemicals and aerosol cans, were the primary driver of this decline and negatively impacted our margin by 140 basis points. As you know, crude oil is one of the primary feedstocks of our petroleum based specialty chemicals. And recently, we've experienced rising oil costs, which have put pressure on our cost of goods in all three of our trading blocks. Rising petroleum based specialty chemical costs negatively impacted our gross margin by 100 basis points in the quarter. Also contributing negatively to our gross margin by 40 basis points was the increased cost of aerosol cans.
In addition, gross margin was also negatively impacted by 40 basis points due to higher warehousing and inbound freight costs, mostly in the Americas segment and primarily due to the freight market in the U. S. Promotion and other discounts that we give our customers also negatively impacted gross margin by 30 basis points. And then finally, we had the changes in foreign currency exchange rates negatively impacted gross margin by 20 points due to fluctuations in the exchange rates for the euro and the U. S.
Dollar against the pound sterling in our EMEA segment. This is because in EMEA, our cost of goods are sourced primarily in pound sterling, while approximately 70% of our revenues are generated in currencies other than the pound sterling. These negative impacts to gross margin were partially offset by the combined effects of favorable sales mix changes and decreases in other miscellaneous costs, primarily in the Americas and EMEA segments, which positively impacted gross margin by 130 basis points. In addition, sales price increases, which we implemented in EMEA and Asia Pacific over the last 12 months positively impacted gross margin by 50 basis points. Continually rising input costs have made it necessary for us to review our pricing structure and implement price increases in each of our trade blocks.
The price increases in the Americas will take effect in the Q4 of this year and will begin to be reflected in our gross margin in coming quarters. In the near term, we expect with these price increases in place, we can manage gross margin at a level that is near our target of 55%. And fortunately, due to the recent volatility in the price of crude oil, it is uncertain the level to which our gross margin will be impacted over the short term. However, we will continue to be focused and deliberate in managing our business so that we can maintain our gross margin at a level that is above our target of 55% over the long term. Now I'll address the 30% or our cost of doing business.
In the Q3, our cost of doing business was approximately 32% compared to 33% last year. Revenue growth is the most important factor in achieving our long term target of 30%. In the Q3 of this year, our reported revenue increase positively affected our cost of doing business percentage. And for the Q3, 72% of our cost of doing business came from 3 areas: people costs or the investments we make in our tribe the investments we make in marketing, advertising and promotion. As a percent of sales, our A and P investment was 5.1% in the 3rd quarter.
And finally, freight costs, the cost to get our products to our customers. In the Q3, our cost of doing business increased $2,400,000 compared to last year, primarily due to $1,200,000 in unfavorable impacts from changes in foreign currency exchange rates. Various other items also contributed to the increase in our cost of doing business, including increased travel and meeting expenses, along with general overhead costs. Increased investment in research and development also impacted the cost of doing business in the 3rd quarter. These increases were slightly offset by lower related costs due to lower earned incentive compensation.
While our long term objective is to have our cost of doing business closer to our target of 30% of net sales, we'll continue to make the necessary investments in support of our strategic initiative that of operational excellence. And that brings us to EBITDA, the last of our 50five-thirty-twenty five measures. EBITDA was 23 percent of net sales in the quarter. And that completes our discussion of the fifty fivethirtytwenty five business model for the current quarter. I'll now discuss a couple of other items worth noting.
First, our provision for income tax was 24.3% in the 3rd quarter compared to 28 0.8% last year. The decrease in the effective income tax rate was primarily due to the favorable impact from the Tax Cuts and Jobs Act in the U. S, which became effective for us in the Q2 of this year. Based on our initial analysis of the U. S.
Tax reform, but subject to revisions of our provisional amounts, we expect that our effective tax rate for the full fiscal year 2018 will be in the 22% to 23% range. Net income for the Q3 was $16,100,000 versus $14,400,000 in the prior year, reflecting an increase of 12%. Changes in foreign currency exchange rates had a favorable impact of about $800,000 on the translation of our consolidated results this quarter. On a constant currency basis, net income would have increased by 6 percent compared to last year. Diluted earnings per common share were $1.15 in the 3rd quarter compared to 1 point 0 $2 for the same period last year.
Diluted weighted average shares outstanding decreased to 13,900,000 shares from 14,000,000 shares a year ago. Now a word about our balance sheet and capital allocation. Due to the recent tax law changes, in May, we decided we'll repatriate a portion of our earnings generated abroad. As a result, you will see large fluctuation on our balance sheet between short term investments and cash and cash equivalents for the current quarter. Since our plans are to use the proceeds to pay down a portion of our line of credit in the Q4, we're also reclassified $80,000,000 of our line of credit balances from long term to short term as of May 2018.
Though we are in the process of repatriating these earnings, our capital allocation strategy remains largely the same and includes a comprehensive approach to balance investing in long term growth, while providing strong returns to our stockholders. We typically target maintenance CapEx of between 1% 2% of net sales. But as we've previously disclosed, in addition to our normal maintenance CapEx, we have purchased and are in the early stages of renovating an office building to house our U. K.-based tribe members. In total, this capital expense will cost approximately US13 $1,000,000 and will be which will be incurred over fiscal years 2018 2019.
We continue to return capital to our stockholders through regular dividends and share repurchases. On June 19, 2018, our Board of Directors approved a quarterly cash dividend of $0.54 per share payable July 31st to stockholders of record at the close of business on July 20. And based on today's closing price of $153.05 the annual dividend yield is 1.4%. During the Q3, we repurchased just over 48,000 shares of our stock at a total cost of $6,400,000 under our current $75,000,000 share repurchase plan, which was approved by the Board in June of 2016. At the end of the Q3, we had $26,100,000 remaining under the 2016 plan.
In order for the company to continue its share repurchase activities, our Board of Directors approved a new share repurchase buyback plan on June 19, 2018, which authorizes the company to acquire up to $75,000,000 of its outstanding shares following the expiration of the current plan and runs through August 31, 2020. So with that, let's turn to the fiscal year 2018 guidance. We are updating our net sales, net income and EPS guidance today only to reflect the recent changes in foreign currency exchange rates. And with that, net sales growth is projected to be between 6% 8%, with net sales expected to be between $403,000,000 $411,000,000 Gross margin for the full year is expected to be near 55%. Advertising and promotion investment is projected to be near 6% of net sales and net income is projected to be between $56,300,000 $57,000,000 And diluted earnings per share is expected to be between $4.05 $4.10 based on an estimated 13,900,000 weighted average shares outstanding.
This guidance does include any future acquisitions or divestitures and assumes that foreign currency exchange rates and commodity prices will remain close to current levels for the remainder of fiscal 2018. Now that completes the financial overview. Now I'll turn it back to Gary. Thanks, Jay.
In summary, here's some of what you heard on this call today. You heard that we had a 9% net sales growth on reported basis and a 5% net sales growth on a constant currency basis. You heard that our global sales of WD-forty multi use product grew 10% during the quarter. You heard that global sales of W40 Specialists grew 16% during the quarter. You heard that we reported record EPS of 1.15 dollars You heard that price increases that have been or will be implemented this year are expected to help our gross margin remain in line with our fifty fivethirtytwenty five business model.
You heard that we decided in May we will repatriate some of our earnings generated abroad and use these proceeds to pay down a portion of our line of credit. You heard that we'll continue to return capital to our stockholders through regular dividends and share repurchases. And you heard that we have updated our fiscal 2018 guidance to only reflect updated foreign currency exchange rates. So today I'd like to share with you in closing a quote from Nelson Mandela, Education is the most powerful weapon which you can use to change the world. Thank you for joining us today.
We will be pleased now to open the conference call for questions and we'll go back to the operator.
And your first question comes from the line of Liam Brooke from B. Riley FBR. Please go ahead.
Thank you. Good afternoon, Gary. Good afternoon, Jay.
Good afternoon, Liam.
Gary, you had strong specialist sales overall. Understanding that sales are variable from quarter to quarter, you did have lower sales in the Americas and specialists. Is there something related to that or is it just timing of promotion or what was behind that?
It's again, Liam, it's just a continuation of the process of expansion of specialists. Shared in the past that you're going to see it vary from quarter to quarter. We are 26% up year to date. Specialist sales are now pushing in the I think for the year in the 20 $7,000,000 $28,000,000 mark. We want to take that to $100,000,000 by 2025.
So it's a journey. And no, there's nothing that concerns us. We continue to build more of that business on a day to day basis.
Okay. And EZ Reach in the U. S. Was up 12%. You've launched that product in Europe, WD-forty Flexible.
How has the progress been or is it too early to tell?
We've launched it in Europe only in Italy and France. And the initial launch was successful. We're now ramping up our plans to take it further into Europe next year, which is really a plan around production. We have capacity. So we're now going to be expanding that across a number of other markets in Europe as we roll out our plans in the following fiscal year.
So far, very pleased with EasyReach everywhere, including Australia and France and Italy and the U. S.
Great. And Jay, you mentioned that you're going to allocate some of your cash to reducing the short term debt. Can you give us a sense as to how much you plan on reducing that percentage wise or any way?
Yes. We think it's about you see about $80,000,000
So you'll reduce that by $80,000,000 that?
Yes. That's our expectation.
Great. That's it for me. Thank you.
Thank you.
Your next question comes from the line of Daniel Rizzo from Jefferies. Please go ahead.
Hi, guys. How are you? Good, Daniel. How are you? Doing well.
So what's the range for petroleum prices before you would kind of feel the need to raise your own prices again? I mean, do you have a goal or a range in mind for that?
We're currently kind of at the top end of where we think oil was going to be when we raised our prices. So I think that we'll be watching it closely. I would suggest that anywhere in the mid-80s is something that would be impactful. We need to wait until we see the flow through and the mix of what we've already done. So we I think oil is currently sitting around the 73, 74 mark.
So we'll see how the price rises impacted as they flow through, but we would think that if it got closer to 85, we might have to do something differently. Okay.
And then you adjusted guidance to account for FX changes or swings. I was just wondering what your assumptions are for FX for the remainder of the year?
Essentially that FX would rates would remain the same as they are. So if we see much variance from where they are today, that would have an impact, but
Okay. And then finally, you indicated you're expanding your online presence for WD-forty bike and then doing your digital efforts. I may have asked before, but is that included like working with like retailers such as Amazon?
Oh, yes. Amazon has been a customer, is a customer with us globally as is eBay, Tae Bo and most of the new digital players as well as the great work that we're doing and getting support from our normal regular customers who are having expanded digital presence. So our investment in digital is to maximize search engine optimization, to continue to have digital content that's driving consumption through education and new uses. We're very excited about the investment this year and next year and the year after. We have a true determined goal to own digital globally in our category.
And the reason we can do that is we're the only true global brand. So we're excited about it and we're pleased to be investing against it.
Okay. And I'm sorry, just go to one more. So you mentioned that I think there's some disruption with 3 major marketing distributors, I think in China or in Asia anyway. Does that just mean you're shifting you're changing distributors, like you're changing them out with somebody different? And I was wondering if that's true, how often that happens?
Okay. First, answer the first part of the question. No, it's not China. It was in Singapore, Malaysia and Indonesia. We already made the change a number of months ago, but when we change marketing distributors, there's a period of time where inventory transfers from the old distributor to the new distributor.
And while the new distributor settles into distribution, we tend to have a hiatus in order flow. How often does it happen? When it needs to happen. If you look at our distributor markets globally, we have many, many, many that have been with us for many years. But if we feel that a market needs further development, we analyze that market, we determine whether we should be direct in that market or whether we need to find a new partner that has broader distribution and we make those changes.
In Asia Pacific, a number of years ago, we changed out our one of our distributors and that was probably the only time for a while, but it's not something that we do that regularly, but we do it when we need to, when we feel that we need to increase the presence in the market.
All right. Thank you very much. You're welcome.
Your next question comes from the line of Rosemarie Morbelli from Gabelli and Company. Please proceed with your question.
Good afternoon, everyone.
Hi, nice to hear you.
Just following up on the last question, what was the reason that you had to change? Were they too small distributors in order to be effective given how you are pushing your new products in the region or were they just not efficient?
Certainly wasn't the second part. As we look at our 2025 goals, we review the capabilities not only of internally of our own organization and where we need to make changes, but externally. So in one market, it was because we believe that we needed to have a different partner to get us to that position in 2025. The second one was because the prior distributor was acquired by a new company. And we as the acquisition was closed, we didn't feel that together that our future was one that would deliver the growth.
So we decided to make a change.
I see. So it is not that at the onset when you get started in one particular region, you first go with a small distributor in order to get your feel around the need in that particular region then?
No, not at all.
Okay. And then if we look at the pricing you have instituted and some that are coming up, Are those catching up with the 2017 inflation rate? And how much more inflations have you seen so far year to date? And what are you expecting for the full year? You'll have a feel for that?
The only area we're certainly seeing any movement in costs certainly are cans. And we've shared the impact of that. The other variable really is oil and who knows. Most of the other input costs have been reasonably stable, right, Jay?
Yes, it depends on the market. So for and we've seen some price inflation in the European segments a while back, but it's most of it's already baked in.
Okay. And you gave us the FX impact on overall revenues and you may have given us that impact on maintenance and on specialists, but I did not catch it. So of the 10% top line growth in maintenance products and the 16% top line growth on specialist products, what was the FX contribution?
I don't know. We've got that broken out.
So I did not miss it.
You did not miss it.
Are you willing to share it so we get a feel?
We don't have it with us right now. So but I would suggest that the ratio would be the same across all of the product lines. Okay.
So just a little less than half then, right? And lastly, if I may, what was still on the FX side, what was the impact on EPS?
On well, I think we gave it on income. I believe it was and I think we said that I apologize. Let me get that here. So our net income was without currency, on a constant currency was up 6% versus the 12% reported.
Okay. And then one last one, if I may. The tax rate for this year will be for the full year 22% to 23%. Do you have an estimate for 2019 and beyond assuming everything stays the same?
Yes, I think we think it will be a couple of percentage points lower.
So around 20?
20 ish is probably a number we can we haven't really fully tied it down, but that's a number that's in the range at the
moment. Okay, great. Thank you and congratulations. Thank
you. Ladies and gentlemen, that does conclude our allotted time for questions. We thank you for your participation on today's conference call and ask that you please disconnect your line.