Wajax Corp. reported a decline in revenue and earnings for the first quarter of the year, but saw an increase in sales within its industrial parts business. The Canadian equipment and industrial parts distributor noted that revenue from its industrial parts segment rose to $154.9 million Canadian, a 1% increase from the previous year. Despite this growth, the increase was not enough to offset decreases in equipment sales, leading to an overall revenue decline of 6.5% and a 15.8% drop in net earnings.
Wajax President and CEO Iggy Domagalski attributed the decline in revenue to decreasing equipment sales in the construction and forestry industries in both eastern and western Canada. However, he remains optimistic about the near-term outlook due to an improved backlog and a new financing program that should help boost equipment sales. Additionally, an increased credit limit will provide the company with more flexibility to invest in organic growth and potential acquisitions.
Despite the overall decline in revenue and earnings, Wajax highlighted improvements in gross profit margin and adjusted EBITDA margin in the first quarter. The company’s industrial parts business was ranked no. 32 on ID’s latest Big 50 list, indicating its continued importance within the company’s overall operations.
Moving forward, Wajax plans to closely monitor market conditions and customer purchasing patterns while focusing on cost management and executing its strategic priorities