Wajax industrial equipment supplier reports its third quarter profit falls to $6.8 million from $18.4 million

By The Canadian Press

TORONTO - Wajax Income Fund (TSX: WJX-UN.TO), a supplier and servicer of industrial equipment, reports its third quarter profits fell to $6.8 million or 41 cents a unit from $18.4 million or $1.11 a unit.

Revenues dropped to $226.7 million from $299.2 million as the company was squeezed by the recession.

'The weak Canadian economy continued to negatively affect most of our end markets in the third quarter," Neil Manning, the company's president and CEO, said Wednesday.

"In particular, reduced activity in manufacturing, forestry, construction and natural gas drilling and servicing significantly impacted sales in all three business segments."

Added Manning: "While revenues remain significantly below last year, we believe market demand has stabilized. We anticipate activity in the oil sands will improve going into 2010 and we are encouraged by the prospects related to planned government stimulus spending.

"Overall, we believe the fund is well positioned to take advantage of growth opportunities, particularly in the energy, mining and infrastructure sectors as the Canadian economy emerges from this downturn."

Wajax is a diversified income fund that sells and services mobile equipment, industrial components and power systems, through 110 branches across Canada.