Sales Decline in First Quarter for Canadian Distributor Wajax
Canadian distributor Wajax posted first quarter 2024 revenue of CDN $482.3 million compared with $516.1 million in the first quarter of 2023, a 6.5-percent decline, the company reported. Equipment rental revenue increased slightly from $10.7 million a year ago to $10.8 million in 2024’s first quarter. Engineered repair service was also flat, going from $85 million a year ago to $84.2 million in 2024’s first.
Product support was also essentially flat as was Industrial Parts. The big difference was in Equipment Sales, which tumbled from $132.3 million a year ago to $98.1 million in the just concluded quarter.
Revenue in western Canada of $219.7 million, a decrease of 7.7 percent from the same period in the prior year, primarily because of lower equipment sales in the construction and forestry category. This increase was offset partially by higher industrial parts sales. Revenue in central Canada of $90.5 million increased 3.7 percent from the same period in the prior year due primarily to higher ERS sales. Revenue in eastern Canada of $172.2 million decreased 9.8 percent from the same period in the prior year, primarily because of lower equipment sales in the construction and forestry, and material handling categories.
“[The company’s] year-over-year decrease was primarily due to a decline in construction and forestry equipment sales in western and eastern Canada,” said Iggy Domagalski, president and CEO. “Given our increased backlog of $587.1 million as at March 31, 2024, and the new HCMA financing program available March 1, 2024, stronger equipment sales are expected in the near term, and inventory is expected to decline over the next two quarters.
“The recently completed $100.0 million increase in credit limit under our senior secured credit facility provides us with additional flexibility as we continue to invest in future organic growth and our robust pipeline of potential acquisitions. We continue to monitor end markets and customer purchasing patterns, while being prudent with costs and maintaining focus on the execution of our strategic priorities.”
