Toronto-based Wajax Income Fund last week posted improved results for the fourth quarter of 2006 with $294.5 million in total revenue for the quarter, compared to $276.8 for the same period last year, a 6.4-percent increase. Total 2006 revenue was $1.21 billion, up from $1.05 billion for 2005, a 15 percent jump.
Mobile equipment revenues decreased 4 percent from the comparative period because last year’s revenue included the sale of several large mining machines not repeated in 2006. Mobile equipment segment earnings rose 6 percent to $9.8 million. Revenue in Industrial Components and Power Systems increased 14 percent and 23 percent respectively. All regions posted revenue gains with particular strength in the Alberta energy sector.
Net earnings from continuing operations for the quarter were $18.1 million or $1.09 per unit compared to $15.8 million or $0.95 per share in 2005.
“We posted record revenue and earnings for the 2006 full year,” said Wajax president and CEO Neil Manning. “Looking forward to 2007, we expect another good year for the Fund. While we expect activity in certain sectors of the economy, such as the western Canada oil and gas and Canadian housing market to moderate somewhat compared to 2006, we believe we have the opportunity to negate the impact of these factors by capitalizing on a number of other growth opportunities. Not only do we expect to benefit from sales opportunities for mining loading equipment and G.E. Energy engines in 2007, but we also expect to further improve operating results through a number of additional profitability improvement initiatives across all three businesses.
Wajax Income Fund is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Wajax also has a significant rental business. Its 2005 rental revenue was about 3.7 percent of total and the company is No. 70 on the RER 100.