Wajax's profit rises on higher demand for equipment

Fri Aug 10, 2012 10:08am EDT
 
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(Reuters) - Industrial equipment distributor Wajax Corp's WJX.TO quarterly profit rose 12 percent on higher demand from construction and mining industries but the company said growth would be modest for the full year as oil and gas drilling activities slow down in western Canada.

Net income rose to C$18.5 million ($18.65 million), or C$1.09 per share, from C$16.5 million, or 98 Canadian cents per share, a year earlier.

Revenue rose 16 percent to C$386.6 million.

Equipment segment revenue rose 29 percent to C$212.3 million while that from industrial components segment rose 5 percent to C$94 million.

Revenue from power systems segment was flat at C$81.8 million due to a softening energy sector in western Canada and lower margins at its Ontario division.

Shares of the Mississauga, Ontario-based company were down 2 percent at C$50.25 on Friday on the Toronto Stock Exchange.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian)