Restructuring turns around their profits

Article Excerpt

WAJAX CORP. $18.66 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding: 20.0 million; Market cap: $369.8 million; Dividend yield: 5.4%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions. Wajax’s customers are spread across the resources, construction, manufacturing and transportation industries. Sales raise across all segments In the quarter ended September 30, 2018, the company’s revenue jumped 23.2%, to $367.4 million from $297.9 million a year earlier. All of Wajax’s divisions had sales increases, especially construction equipment, mining in Western Canada, and power generation in Eastern Canada. Excluding one-time items, Wajax made $10.7 million, or $0.52 a share, in the latest quarter. That’s up 23.0% from $8.7 million, or $0.45. In addition to the higher revenue, the company’s ongoing restructuring efforts contributed to the profit jump. As part of that plan, Wajax cut its workforce by 10%. Savings from the restructuring should also lift 2019 earnings to $2.48…

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