Wajax Corporation

Wajax Corporation

March 21, 2011 17:01 ET

Wajax Statement on Hitachi Japan Supply Chain

TORONTO, ONTARIO--(Marketwire - March 21, 2011) - Wajax Corporation (TSX:WJX) continues to monitor developments in Japan for potential impacts on its Mobile Equipment business unit. Wajax is a distributor of Hitachi construction and forestry excavators and mining equipment in Canada. Hitachi equipment and parts distributed by Wajax, accounting for approximately 18% of 2010 consolidated revenue, are manufactured and sourced from various locations in Japan and the United States.

Neil Manning, President and CEO, said, "Hitachi has not yet indicated the extent to which damage to their Japanese operations will impact the production and export of equipment and parts from that country.

Hitachi has announced the work of inspecting and restoring its damaged Japanese plants is ongoing. This may give rise to equipment delivery delays in the construction, forestry and mining segments.

Although Wajax has taken steps to significantly increase its parts inventory on hand, some shortages are also possible as parts and components that cannot be replenished from the United States may not be readily available from certain locations in Japan.

Until more detailed information is available, we remain unable to assess the impact on our Mobile Equipment business unit but we will continue to monitor and report on the situation as major developments occur."

Wajax is a diversified corporation that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems, through a network of 108 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Forward-Looking Statements

This news release contains forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions.

Although we believe that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Undue reliance should not be placed on forward-looking statements, as a number of factors could cause the actual results to differ materially from the expectations expressed in the forward-looking statements. Information on risk factors is included in the Management's Discussion and Analysis for the year ended December 31, 2010 under the heading "Risk and Uncertainties", and in other reports filed by the Fund and the Corporation with Canadian securities regulators and available at www.sedar.com.

Contact Information

  • Wajax Corporation
    Neil Manning
    President and Chief Executive Officer
    (905) 212-3300
    Wajax Corporation
    John Hamilton
    Chief Financial Officer
    (905) 212-3300