Wajax Income Fund reported a 10-percent decline in first-quarter profit because of weak demand across all its segments, adding that it expects the first half of the year to be challenging.

Wajax, a Mississauga, Ont.-based equipment dealer and rental company, which also has divisions devoted to power systems and industrial components, posted a first-quarter net income of CA $8.4 million compared with profit of CA $9.3 for the same period in 2009.

Revenue for the quarter dropped 14 percent year over year from CA $264 million in the first quarter of 2009 to CA $227.7 million (about U.S. $218 million) in Q110.

Revenue from the mobile equipment, which includes most of the company’s rental revenue, dropped 16 percent from CA$129.3 million in 2009 to CA $108.4 in the recent quarter.

“In the mobile equipment business, quoting and order intake activity for equipment in the mining and the oil sands sectors continues to improve, although product supply lead times are beginning to lengthen,” said Neil Manning, Wajax president and CEO. “Demand for equipment in the construction, forestry and material handling sectors is also beginning to show signs of a pickup. While parts and service volumes remain below last year’s level, volume is trending positively.”

Construction equipment revenue decreased $11.8 million year over year, with decreases in new Hitachi excavator sales in western Canada accounting for most of the decline. Forestry equipment revenue increased $2.8 million, mostly attributable to higher sales of Tigercat products in western Canada and Ontario.

Wajax is No. 41 on the RER 100.