They’ll gain with a resources surge

Article Excerpt

WAJAX CORP. $23.97 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax. ca; Shares outstanding: 20.0 million; Market cap: $480.1 million; Dividend yield: 4.22%) 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. In the three months ended September 30, 2017, the company’s revenue rose 4.3%, to $299.0 million from $286.6 million a year earlier. However, revenue actually rose 12% if you disregard a $20 million mining order during the yearearlier period. Wajax made $9.1 million in the latest quarter, or $0.46 a share. That’s up 20.0% from $7.6 million, or $0.38 a share a year earlier. Big cost cuts spur earnings The company’s ongoing restructuring efforts are responsible for the profit gain. That plan aims to reduce Wajax’s workforce by 10%. The company expects annual savings of about $17 million, starting in 2017. The restructuring should…

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