Wajax Reports U.S. $11.4 Million Loss

Toronto-based Wajax Ltd. last week said it plans to cut costs and sell assets after reporting a loss of U.S. $11.4 million for its third quarter. Wajax also last week sold its Seattle-based dealer, Pacific North to Montana-based Komatsu dealer Modern Machinery, providing Wajax with about $20 million to help reduce overall debt, estimated at $138.5 million at the end of June (see accompanying story).

Softness in key markets – after-sale parts, mobile equipment, diesel engines and industrial components for natural resources, construction, transportation and other industries – pushed Wajax into a U.S. 64 cents loss per share for the three-month period ended Sept. 30, compared with a 3Q01 profit of about 7 cents per share.

Wajax’ total revenue fell from about U.S. $160.4 million to $132.3 million.

In other Wajax news, the company last week appointed Neil Manning as president and CEO. Manning was elected to the board of directors of Wajax in May after serving as president of Canadian Underground Equipment. Before that, Manning was president and chief operating officer of Strongco, also a Toronto-based equipment distributor.

Wajax is No. 40 on the RER 100.