Canadian distributor Wajax posted consolidated first-quarter revenue of $358.1 million, compared with $303.9 million for last year’s first quarter, an 18-percent increase. Wajax equipment revenues increased 13 percent on higher revenue in most product categories. Wajax Power Systems jumped 32 percent as a result of its acquisition of Harper Power Products in May 2011 as well as improved equipment parts and service volumes in western Canada.
Wajax Industrial Components revenue increased 16 percent on stronger demand for all major product categories, primarily as a result of increases in the energy sector in Western Canada. Net earnings for the quarter were $17.1 million, a 33-percent jump compared with $12.8 million in the first quarter of 2011, primarily as a result of higher sales volumes in all categories.
“With a 33-percent increase in earnings, we are very pleased with our 2012 first-quarter results,” said Mark Foote, president and CEO. “As we expected, improved results were led by sales growth from the energy sector in Western Canada and a relatively strong mining market across Canada. For the balance of 2012, we expect the level of Canadian economic activity to be similar to what was experienced in the first quarter. Market concern pertaining to the European debt crisis, the slowing Chinese economy and the related effect on the Canadian resource sector has heightened recently.
“While we are concerned about the effect these issues may have on our revenue base, quoting in most of our end markets remains active and we continue to maintain a strong backlog.”
Wajax also has a strong rental program, although it doesn’t break out rental revenue in its quarterly results. Based in Mississauga, Ontario, Canada, Wajax is No. 48 on the new RER 100.