Wajax Corp. on Wednesday reported declines in both revenue and earnings in the first quarter of the year, but the company’s industrial parts business saw a slight increase in sales to start 2024.
The Canadian equipment and industrial parts distributor said revenue attributed to its industrial parts segment climbed to $154.9 million Canadian, a 1% increase compared to the same period last year.
The industrial parts business again accounted for the largest share of the company’s overall revenue, but the increase still was not enough to offset steep declines in Wajax’s equipment sales. In total, Wajax’s revenue was down by 6.5% year-over-year, while net earnings were off by 15.8%.
Wajax President and CEO Iggy Domagalski attributed the decline primarily to falling equipment sales to the construction and forestry industries in both eastern and western Canada. He suggested that an improved backlog and a new financing program should bolster near-term equipment sales, and that an increased credit limit would provide “additional flexibility” to invest in organic growth and “our robust pipeline of potential acquisitions.”
The company said many of its markets reflect “solid fundamentals,” while officials highlighted improvements in both gross profit margin and adjusted EBITDA margin in the first quarter.
“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,” Domagalski said in a statement.
Wajax’s industrial parts business came in at no. 32 on ID’s latest Big 50.
