Restructuring prepares them for volatility

Article Excerpt

WAJAX CORP. $14.80 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:20.0 million; Market cap: $299.5 million; Dividend yield: 6.8%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts, such as ball bearings, motors, hoses and fittings, and power systems, including diesel engines and transmissions. The company’s customers are spread across the natural resources, construction, manufacturing and transportation industries. In the three months ended March 31, 2016, Wajax’s clients in mining and oil and gas made fewer purchases. As a result, revenue fell 10.1%, to $285.0 million from $317.2 million a year earlier. The company lost $9.7 million in the quarter, or $0.49 a share, compared to a gain of $5.7 million, or $0.34 a year earlier. The latest results included $12.5 million ($9.1 million after-tax) in restructuring costs. Without that one-time charge, Wajax lost $600,000, or $0.03 a share. The company expects restructuring to save $6 million to $8 million this year, and $15 million annually starting in…