Canadian equipment distributor Wajax posted a 2-percent revenue decrease in the third quarter, dropping from CDN $361.9 million in last year’s third quarter to $356.4 million (about U.S. $356 million) this year. The decline was largely the result of a $22.4 million reduction in sales in the company’s Power Systems division caused by decreased activity in the western Canada oil and gas sector. Equipment sales increased 9 percent on higher revenue in all key product sectors, with particular strength in construction. Industrial Components increased 1 percent. Rental and “other” revenue for the quarter totaled $10.5 million.
Rental and other revenue for the first nine months of the year was $26.5 million.
“Overall results for the quarter met our expectations,” said president and CEO Mark Foote. “We were very pleased with the performance of the equipment division which continued to grow earnings year over year in spite of the loss of the LeTourneau product support business. We enjoyed higher equipment sales on stronger construction and material handling markets. Softer economic conditions, particularly related to the western Canadian oil and gas sector, negatively impacted profitability in Power Systems and Industrial Components.”
Based in Mississauga, Ontario, Canada, Wajax Corp. is No. 48 on the RER 100.