Wajax reported a decline in its industrial parts business and overall in the second quarter of the year, company officials announced Thursday.
The Canadian industrial supply and equipment provider posted $138.4 million Canadian in industrial parts revenue in its latest quarter, a decrease of 1.9% from the same quarter last year.
Overall, the company’s sales of $515.7 million Canadian were down 5.7%, led by amid a 22.3% decline in equipment sales — formerly its largest segment. In addition to those decreases, its equipment rental segment was down by 8.2%; those totals were offset by increases in its product support and engineered repair services businesses.
Wajax’s net earnings, however, were up 22.3% year-over-year to $18.9 million Canadian, and adjusted EBITDA rose 2.6% to $45.9 million.
Wajax President and CEO George McClean, who began leading the company in March, highlighted “improved margins, strong operating cash flow and a healthy balance sheet” in the quarter.
"Our disciplined approach to margin management, working capital and capital allocation continues to strengthen the business and support our financial flexibility," McClean said in a statement.
The company said that although demand remained “solid” in its mining and energy end markets, conditions in other sectors remained mixed “with ongoing macroeconomic uncertainty.”
McClean added that the company has convened a “Strategy Working Group” of its senior leaders to guide a “strategic planning process” focused on its sales and technician workforce, its go-to-market initiatives and other priorities. The company intends to share “additional details on our priorities and investment focus as that work progresses,” McClean said.
Wajax is the no. 27 distributor on ID's latest Big 50 list.
