Wajax posted strong first-quarter results with consolidated revenue of $303.9 million (about U.S. $316 million), an increase of 34 percent compared with $227.4 million for the same period a year ago. Equipment and Power Systems segments increased 40 and 54 percent respectively on higher equipment, parts and service sales with the majority of the increases attributed to western Canada. Industrial Components revenue increased 11 percent on stronger demand for all major product categories.
“With earnings before tax more than doubling, we are very pleased with our 2011 first-quarter results,” said Neil Manning, president and CEO. “As we had expected improved results were driven by the robust energy and mining markets in western Canada. However, we were also encouraged by evidence of stronger activity in central and eastern Canada, particularly in forestry, construction and certain other industrial sectors.”
Manning added that the company has been able to minimize the potential supply disruptions to its Hitachi product line caused by the earthquake and tsunami in Japan. “With the inventory levels we decided to carry prior to, and immediately after this disaster, we expect we will have adequate stock of Hitachi parts and construction excavators to meet market demand. However, we are expecting some delays in obtaining mining equipment, which will have some impact on our 2011 revenue for the remainder of the year.”
Based in Mississauga, Ontario, Wajax Corp. is No. 41 on the new RER 100.
