May 7, 2010 / 2:20 PM / 8 years ago

UPDATE 1-Wajax Income Q1 profit falls 10 pct on weak demand

* Q1 earnings C$0.50/unit vs C$0.56/unit last year

* Q1 rev down 14 percent

May 7 (Reuters) - Wajax Income Fund WJX_u.TO reported a 10 percent drop in first-quarter profit due to weak demand across all its segments, and the company said it expects the first half of the year to remain challenging.

Wajax, which distributes mobile equipment, industrial components and power systems, posted a net income of C$8.4 million, or 50 Canadian cents a unit, compared with a profit of C$9.3 million, or 56 Canadian cents a unit, a year ago.

The company, however, said demand for its products will improve modestly in 2010, with the second half of the year faring better.

Revenue fell 14 percent to C$227.7 million, hurt by a 22 percent dip in power systems sales and a 16 percent drop in sales of mobile equipment.

Analysts on average were looking for a profit of 53 Canadian cents a unit, on revenue of C$238.6 million, according to Thomson Reuters I/B/E/S.

Shares of the company were down 58 Canadian cents, or 2 percent, at C$23.06 Friday morning on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Ratul Ray Chaudhuri)

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