Wajax Q3 profit beats market estimates

Nov. 15, 2010 – Wajax Income Fund, a distributor of mobile equipment, posted its largest quarterly profit in nearly two years, helped by strong demand and improved margins, and declared a special cash distribution. The company is headquartered in Toronto, Ont.

The fund, which also distributes industrial components and power systems, said it expects to continue to see revenue and earnings growth in the fourth quarter compared with last year.

For July-September, the trust earned C$19.4 million, or C$1.17 a unit, compared with C$6.8 million, or 41 Canadian cents a unit, a year ago.

Revenue for the Toronto-based company jumped 26 percent to C$294.6 million. Mobile equipment segment revenue rose 28 percent, while power systems revenue increased 33 percent and industrial components sales rose 14 percent.

Analysts on average had forecast earnings of 75 Canadian cents a share on revenue of C$271.7 million.

The fund said it benefitted from improved gross margins in its power systems and industrial components business units.

Wajax set a special monthly cash distribution of 40 cents a unit for November.
Units of the fund were up 2 percent at C$32.31 on Thursday on the Toronto Stock Exchange. They have gained 22 percent in value since the fund reported second-quarter results in August.