Rermag 4686 Wjx Logo 1
Rermag 4686 Wjx Logo 1
Rermag 4686 Wjx Logo 1
Rermag 4686 Wjx Logo 1
Rermag 4686 Wjx Logo 1

Distributor Wajax Enjoys 6 Percent Third Quarter Revenue Hike

Nov. 5, 2014
Canadian distributor and rental company Wajax posted a 6-percent revenue increase in the third quarter with $359.5 million, compared to $338.5 million in the third quarter of 2013.

Canadian distributor and rental company Wajax posted a 6-percent revenue increase in the third quarter with $359.5 million, compared to $338.5 million in the third quarter of 2013. Its three major segments had comparable revenue increases – Equipment rose from $171.6 million to $179.3 million, Industrial Components from $98.9 to $103.2 million and the best, percentage-wise from $69.2 to $78.2 million was Power Systems, a 13-percent leap.

Higher mining and forestry equipment sales in the Equipment segment offset reduced mining-related parts and service volumes. The Power Systems increase was mostly related to higher volumes to oil and gas and on-highway customers. Growth in the Industrial Components segment, which rose 4 percent, resulted from improved bearing and power transmission parts sales in all regions.

Net earnings for the quarter were $11.1 million, compared to $11.5 million in last year’s third quarter.

“We have adopted a more cautious outlook for the rest of 2014, given recent and continuing weakness in commodity markets,” said Mark Foote, president and CEO. “Our expectation regarding key market demand in Canada for the remainder of the year is mixed. Capital goods purchases and certain aspects of maintenance spending by mining and oil sands customers may be constrained, adversely impacting the Equipment segment and, to a lesser degree, the Power Systems segment. However, the Power Systems segment continues to expect some improvement in the conventional oil-and-gas sector relative to last year.”

Wajax has 121 branches across Canada. Based in Mississauga, Ontario, the company is No. 46 on the RER 100.