Wajax Income Fund, a Canadian distributor and rental company based in Mississauga, Ontario, Canada, posted a 9.5-percent revenue increase in the second quarter of 2010, with CA$272.3 million in revenue (about U.S. $264.4 million), compared with CA$248.7 million for the second quarter of 2009. The Mobile Equipment segment increased 12 percent on higher equipment, parts and service volumes in almost all product categories.
Consolidated net earnings for the quarter was CA $12.2 million, or 74 cents per unit, a 24-percent jump compared with CA$9.8 million, or 59 cents per unit in last year’s second quarter. The increase in earnings is attributable to higher revenues and margins in all three divisions — Mobile Equipment, Industrial Components and Power Systems.
“Second-quarter consolidated earnings were better than expected,” said Neil Manning, president and CEO. “Stronger market demand for our products and services that began in March carried on throughout the second quarter. In the Mobile Equipment business, demand for equipment in almost all product categories was stronger than last year and parts and service volumes continued to trend upward. Daily sales and backlog in Industrial Components improved again in the second quarter as demand across a number of sectors continued to show positive signs. Power Systems is experiencing an increase in demand for power generation packages, as well as parts and services, especially in Western Canada.
“We expect demand for construction, forestry and power generation equipment, as well as Industrial Components products, will continue to exceed the levels experiences last year. It is also anticipated that activity in mining, the oil sands, and the government and utilities sector will remain strong.”
Wajax Income Fund is No. 37 on the RER 100, with rental revenues in 2009 of $37.2 million, about 8 percent of the company’s revenues.