Canadian distributor and rental company Wajax Corp. this week posted $334.1 million (about U.S. $341.7 million) in second-quarter revenue, a 22.8-percent hike compared to $272.0 in the same period last year. For the first six months of 2011, Wajax’s revenue a 27.5-percent increase, from $500.2 million a year ago to $638.0 in 2011.
Power Systems revenue increased 47 percent on significantly higher equipment sales in western Canada and as a result of its May acquisition of Ontario-based Harper Power Products. Industrial Components revenues jumped 18 percent on stronger demand for all major product categories and equipment sales rose 15 percent on higher revenue from the construction, forestry and material-handling sectors.
Net earnings for the quarter were $16.5 million, or 99 cents per share, compared with $12.2 million or 73 cents per share in Q210, a 35-percent increase.
The equipment segment recently closed an equipment supply agreement with Shell Canada Energy for seven Hitachi mining shovels and construction excavators, adding to the already existing commercial arrangement with Shell Canada Energy for the supply of parts, components and services until the end of April 2014.
“We continue to be very pleased with our 2011 results,” said Neil Manning, Wajax CEO. “The second-quarter improvement was driven by the robust energy, mining, forestry and construction markets particularly in western Canada. However, we were also encouraged by stronger results in the Equipment segment’s Ontario operation and the eastern Canada business of Industrial Components. Results from the Harper acquisition for the two months since the transaction closed have not met our expectations.”
Manning said the company has minimized the effects of the supply disruption to its Hitachi product line caused by the earthquake and tsunami in Japan. “We continue to experience some product shipment delays for a number of other products from several suppliers, mainly as a result of increased global demand and component shortages.”
For the remainder of 2011, Manning said he expects economic activity in the broader Canadian economy to continue at a similar level as the first six months, with pre-tax earnings to top last year’s numbers.
Based in Mississauga, Ontario, Wajax Corp. is also a major player in equipment rental, ranked No. 41 on the RER 100.