Toronto, Ontario-based Wajax Corporation reported its 2020 second quarter financial results on Friday, showing that sales in its Industrial Parts segment had considerable sales declines on both a sequential and year-over-year basis.
Wajax Industrial Parts — No. 32 on Industrial Distribution’s 2019 Big 50 List — had Q2 sales of $60 million US ($81.6 million CAD) for the three months ended June 30, down 11.0 percent from Q1 and down 13.1 percent year-over-year (YoY). The company said the segment saw lower bearings and hydraulics sales across all regions.
As a whole, Wajax Corp. had Q2 sales of $262 million US ($356.9 million CAD), up 3.5 percent from Q1, but down 12.8 percent YoY. The company had a Q2 net profit of $7.5 million US ($10.2 million CAD), compared to $3.0 million in Q1 and $8.7 million a year earlier.
On the COVID-19 front, Wajax said about 40 percent of its employees continue to work remotely or from home. Any employee required to be in isolation due to diagnosed or suspected virus or exposure continue to receive 10 days of fully paid leave, while company-paid health and dental benefits have been extended for up to 180 days, up from 90-days, for furloughed employees.
As of June 30, 767 Wajax employees were on temporary layoff, reduced hours or participating in workshare programs. During Q2, the company recalled 228 employees and did not proceed with further planned permanent or temporary layoffs.
Voluntary compensation reductions have been extended, including a 20 percent pay cut for CEO Mark Foote, a 20 percent cut of all board and committee retainers, a 10 percent cut for senior executives and a 5 to 10 percent cut for managers.
The company’s new corporate ERP system implementation, which was planned for Q2, remains deferred until 2021.