Wajax expects arduous market conditions to persist into 2020 keeping equipment utilization rates unchanged from last year. The firm expects market conditions to improve some time in H2 2020.
The company’s support parts and service volumes will not suffer this year, and will be aided by its strategy to manage its business and capital in a conservative manner until challenging market conditions dissipate. Additionally, increased engineered repair services and industrial parts volumes, as well as mining deliveries during H2, will offset the burden placed on the company’s consolidated revenues by external factors.
In 2019, Wajax’s equipment sales totaled $523.9mn ($390.3mn), down from $542.8mn in 2018. Its Q4 2019 equipment sales rose to $156.5mn from $139.1mn during the corresponding quarter in 2018.
Product support sales reached $476.1mn last year from $457.6mn in 2018 but decreased to $110.2mn in Q4 2019 compared with $114.2mn in Q4 2018.
Wajax’s industrial parts sales in 2019 increased to $366.6mn from $361.7mn during the prior year, while in Q4 2019 the company’s sales for this segment slid to $88.5mn from $90.5mn during the same quarter one year earlier.
Its 2019 the sales in its ERS segment rose to $149.6mn from $84.6mn in 2018. During Q4 2019, Wajax’s ERS sales increased to $39.2mn from $36.8mn in same quarter in 2018.
Equipment rental sales in 2019 netted the company $36.9mn, increasing from $34.9mn in 2018, while the segment brought in $9.5mn in in Q4 2019 compared with $9.2mn it earned in Q4 2018.
The company’s revenue totaled $1.6bn, up from $1.5bn in 2018, while its Q4 2019 revenue rose to $403.9mn from $389.8mn during the corresponding quarter in 2018. Wajax’s net earnings in 2019 were $39.5mn, increasing from $35.9mn in 2018. During the fourth quarter of 2019, the company had $12.2mn net earnings, doubling its $6.1mn net earnings in Q4 2018.
The firm’s EBIT increased by by 25.4pc to $73.5mn in 2019 from $58.6pc in 2018. During the fourth quarter of 2019, Wajax achieved an EBIT of 21.4mn, an 85.2pc increase from its $11.6mn Q4 2018 EBIT.