Two high-yielding manufacturing buys

Article Excerpt

WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). The company’s customers are in the resource, construction, manufacturing and transportation industries. In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier. Earnings fell 28.6%, to $11.5 million, or $0.69 a share, from $16.2 million, or $0.97. The declines mostly came from reduced activity in the Western Canadian oil and gas industry, which hurt results at Wajax’s power systems business. Lower mining equipment and construction sales more than offset strength in the materials-handling market. Ready for a resource rebound Meanwhile, the company lowered its monthly dividend by 25.9% earlier this year, to $0.20 from $0.27. It made the…