Toronto-based Wajax recently posted an 11-percent increase in first-quarter earnings with net earnings for the quarter at CA $18.7 million (about U.S. $16.8 million), or $1.13 per unit, up from CA $16.9 million or $1.02 per unit in the first quarter of 2006.
First quarter revenues were almost the same year over year. Wajax posted CA $302.3 million (about U.S. $271.7 million), compared with CA $303.2 for the same period last year. The company’s Power Systems sales were up 7 percent on the strength of increased GE Energy engine deliveries and its Industrial Components posted a 3-percent revenue increase. Its Mobile Equipment division decreased 5 percent as a result of lower construction and mining equipment sales in western Canada.
Gross profit in the first quarter of 2007 increased 5 percent, or $3.1 million, and gross profit margin percentage for the quarter increased to 23 percent in 2007, compared with 21.9 percent in 2006. The company credits the improved margins to higher new equipment and service margins.
Wajax also has a strong rental division, and is No. 37 on the new RER 100 with U.S. $42.2 million in 2006 rental volume.