Wajax Increases Earnings 76% in Fourth Quarter, 91% for the Year and Raises Dividend.

TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Wajax Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002)
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(Dollars in millions,
 except per share data)                    Three Months          Year
                                                  Ended         Ended
                                            December 31   December 31
                                          ------------- -------------
                                            2004   2003   2004   2003


Revenue                                   $249.2 $230.9 $928.2 $884.0

Net earnings                                $6.0   $3.4  $18.3   $9.6

Basic earnings per share                   $0.38  $0.22  $1.17  $0.61

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Wajax Limited today announced fourth quarter 2004 earnings of $6.0 million, or $0.38 per share, 76% above the $3.4 million, or $0.22 per share, for the corresponding period in 2003. For the year ended December December: see month. 31, 2004, the Company earned $18.3 million, or $1.17 per share, compared to $9.6 million, or $0.61 per share, recorded in the prior year.

Fourth Quarter Highlights

- Fourth quarter revenues increased 8% (11% after excluding the negative impact of the declining U.S. dollar) with gains experienced in all three core businesses. For the second consecutive quarter Industrial Components led the way with a 13% increase in revenues with strength in virtually all regions of Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and the U.S. Revenues in Mobile Equipment and Diesel Engines increased by 6% and 3% respectively, largely as a result of strong oil sector related sales in western Canada

This article is about the region in Canada. For the school in Calgary, see Western Canada High School.

Western Canada, commonly referred to as the West .

- Quarterly earnings in Industrial Components of $3.1 million improved substantially in Canada and the U.S. from the $0.2 million posted in 2003 as a result of higher revenues and increased margins. Mobile Equipment recorded a 33% earnings increase compared to 2003 on the strength of higher volume, while Diesel Engines earnings were down slightly to $4.7 million.

- Interest expense decreased $0.7 million in the quarter mainly as a result of lower debt, net of cash compared to last year.

- The Company announced that it has recently received two large mining equipment supply and service orders. North American North American

named after North America.

North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus. Construction Group intends to purchase fifteen 330 ton Hitachi Hitachi (hētä`chē), city (1990 pop. 202,141), Ibaraki prefecture, E central Honshu, Japan, on the Kashima Sea. The city is a leading producer of Japan's electrical equipment. mining trucks and two 800 ton Hitachi hydraulic shovels over the next sixteen months for use in a major oil sands project in the Fort McMurray, Alberta Fort McMurray, is a community in the Regional Municipality of Wood Buffalo, in the northeastern part of Alberta, Canada. Although it is commonly referred to and thought of as being a city, Fort McMurray is not incorporated. area. The Company will also supply Elk Valley Elk Valley is a valley in southeastern British Columbia that runs via the basin of the Elk River from the southeastern Alberta border near Kananaskis to the Rocky Mountain Trench. Coal Corporation four pieces of LeTourneau LeTourneau can refer to several things:

R.G. LeTourneau, U.S. businessperson, inventor, and academic.
LeTourneau University, university founded by R. G. LeTourneau.
LeTourneau Inc.

mining equipment over the next six months. The Company expects to enter into long-term Long-term

Three or more years. In the context of accounting, more than 1 year.

long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. product support agreements with these two customers. The total sales value of the equipment plus product support is estimated to be approximately ap·prox·i·mate
adj.
1. Almost exact or correct: the approximate time of the accident.

2. $157 million over the life of the agreements, with the equipment value equal to approximately one half of the total.

- Effective March 1, 2005, the Company will phase out its distribution of Timberjack Timberjack, a subsidiary of John Deere since 2000, is a manufacturer of forestry machinery for both cut-to-length and whole tree logging.

Originally Timberjack was a Canadian operation, started in Woodstock, Ontario, focusing on whole tree logging, but it was acquired by a forestry forestry, the management of forest lands for wood, water, wildlife, forage, and recreation. Because the major economic importance of the forest lies in wood and wood products, forestry has been chiefly concerned with timber management, especially reforestation, products for northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing.

Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it , Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. and the Maritimes. To replace this product line, the Company has secured distribution rights to the Direct Technologies and Logset forestry equipment lines for most regions of Canada. As these two lines are relatively new to the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. market place, replacing the Timberjack revenues will not be immediate; however, they give the Company access to a much larger portion of the Canadian forestry market. The company estimates that this change will reduce 2005 revenue by approximately $15 million.

- The Company raised its quarterly dividend payment by $0.03 per share, declaring a dividend of $0.07 per share payable on March 31, 2005, to shareholders of record on March 15, 2005.

Commenting on the fourth quarter earnings and the outlook for 2005, Neil Manning Neil Mann (born August 26, 1924) is a former Australian rules footballer, who played for Collingwood in the VFL/AFL. He was a premiership player with them in 1953.

Mann was a key position player and won Collingwood's best and fairest in 1954. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated "Our fourth quarter results were a continuation continuation - continuation passing style of the trend we have seen throughout 2004 where earnings were ahead of our expectations. Going into 2005, with the outlook of continued strong industry fundamentals and strategic initiatives in place for each business, we expect to continue to grow revenue and improve profitability overall, with particular emphasis on continuing to build revenue and earnings in the Industrial Components segment".

Wajax is a diversified company diversified company

A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, diesel engines and industrial components, through a network of over 100 branches across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. and the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River
West

Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Wajax will Webcast its Fourth Quarter Financial Results Conference Call. You are invited to listen to the live Webcast on Thursday Thursday: see week. , March 3, 2005 at 2:30 P.M. EST P.M. also p.m. or p.m.
abbr.
post meridiem

Usage Note: By definition, 12 a.m. . To access the Webcast, enter www.wajax.com and click on the link for the Webcast on the Investor Relations Investor relations

The process by which the corporation communicates with its investors. page. The archived Webcast will be available at the above mentioned website within 24 hours after the conference call.

This news release contains forward-looking for·ward-look·ing
adj.
Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan.

Adj. 1. information. Actual future results may differ from expected results.

MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A)

A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial

The following discussion should be read in conjunction conjunction, in astronomy
conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's Quarterly Consolidated Financial Statements Consolidated Financial Statements

The combined financial statements of a parent company and its subsidiaries.

Notes:
Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and accompanying ac·com·pa·ny
v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies

v.tr.
1. To be or go with as a companion.

2. Notes and the Company's Management's Discussion and Analysis for the first, second, and third quarters of 2004 and the year ended December 31, 2003. Unless otherwise indicated, all financial information is in millions of dollars, except per share data.

Quarterly Results of Operations

Consolidated Results

for the three months ended December 31                    2004   2003
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Gross revenue                                           $249.2 $230.9
Net earnings                                              $6.0   $3.4
Earnings per share - basic                               $0.38  $0.22
                   - diluted                             $0.37  $0.22
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for the year ended December 31                            2004   2003
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Gross revenue                                           $928.2 $884.0
Net earnings                                             $18.3   $9.6
Earnings per share - basic                               $1.17  $0.61
                   - diluted                             $1.14  $0.61
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Revenue increased $18.3 million to $249.2 million in the fourth quarter of 2004 from $230.9 million in the fourth quarter of 2003. Net quarterly earnings of $6.0 million, or $0.38 per share, increased $2.6 million compared to the $3.4 million, or $0.22 per share, recorded the previous year.For the year ending December 31, 2004 revenue increased $44.2 million to $928.2 million and net earnings increased $8.7 million to $18.3 million, or $1.17 per share, from $9.6 million, or $0.61 per share, the previous year. The strengthening Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin"
loonie

dollar - the basic monetary unit in many countries; equal to 100 cents relative to the U.S. dollar had the effect of decreasing consolidated con·sol·i·date
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine: revenues by $7.3 million for the quarter and $30.0 million for the year ended December 31, 2004. Canadian operations realized lower sales dollars per unit on U.S. sourced products and Spencer's

This article is about the department store. For the gift and novelty store, please visit Spencer's Gifts.

David Spencer Limited (commonly known as Spencer's U.S. dollar revenues were translated to Canadian dollars at a lower exchange rate.

The following factors contributed to the change in year-over-year quarterly results from operations:

- Mobile Equipment revenues increased 6% and earnings increased $1.7 million compared to last year due primarily to an increase in equipment sales in western Canada and higher margins in eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:

Ontario (1 July 1867)
Quebec (1 July 1867)
New Brunswick (1 July 1867)
Nova Scotia (1 July 1867)

.

- Industrial Components revenues increased $9.2 million or 13%. Earnings increased $2.9 million as the Industrial Components group continued to benefit from increased volumes and higher margins compared to last year.

- Diesel Engines revenues increased $1.5 million while earnings decreased $0.4 million as a result of higher selling and administrative expenses.

- Corporate costs and eliminations increased $1.5 million compared to last year due mainly to accruals Accruals

Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for long-term incentive costs based on changes in the Company's share price.

- The Company's debt of $26.2 million, net of cash, decreased $23.1 million compared to September September: see month. 30, 2004 and $12.5 million compared to December 31, 2003.As a result, the Company's quarter-end debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. of 0.13:1 was improved from last year's ratio of 0.22:1.

- Interest expense decreased $0.7 million quarter-over-quarter mainly as a result of a $30.5 million reduction in the average amount of funded debt Funded Debt

Long-term debt that matures after more than one year.

Notes:
This is usually issued as a bond or a long-term note.
See also: Bond, Debt, Maturity, Note

Funded debt

Debt maturing after more than one year. , net of cash, outstanding during the quarter compared to last year.

During the quarter the Company paid a dividend of $0.04 per share and has declared de·clare
v. de·clared, de·clar·ing, de·clares

v.tr.
1. To make known formally or officially. See Synonyms at announce.

2. To state emphatically or authoritatively; affirm.

3. a dividend of $0.07 per share payable March 31, 2005.

Mobile Equipment

for the three months ended December 31                    2004   2003
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Equipment sales                                           87.1   81.1
Parts and service                                         37.5   36.1
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Gross revenue                                           $124.6 $117.2
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Segment earnings                                          $6.9   $5.2
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for the year ended December 31                            2004   2003
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Equipment sales                                          298.1  294.5
Parts and service                                        150.7  144.4
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Gross revenue                                           $448.8 $438.9
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Segment earnings                                         $22.6  $18.3
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Revenues increased $7.4 million, or 6%, to $124.6 million in the fourth quarter of 2004 from $117.2 million in 2003. The strengthening Canadian dollar relative to the U.S. dollar had the effect of decreasing mobile equipment revenues by $3.7 million for the quarter. Segment earnings increased $1.7 million, or 33%, to $6.9 million in the fourth quarter of 2004 from $5.2 million in the previous year. For the year ended December 31, 2004, revenues increased $9.9 million to $448.8 million and segment earnings of $22.6 million increased $4.3 million compared to last year.

The following factors contributed to the fourth quarter results:

- Revenues in western Canada increased $15.5 million in the quarter which included a 54% increase in equipment revenues, quarter-over-quarter.Strong forestry and construction and mining markets resulted in a$15.9 million increase in equipment sales driven by a $5.5 million increase in new Hitachi excavator ex·ca·va·tor
n.
An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue.

excavator (eks´k sales and an $8.4 million increase in mining equipment revenues resulting from the delivery of four large mining machines.Slightly offsetting these increases were a $0.9 million reduction in crane crane, in zoology
crane, large wading bird found in marshes in the Northern Hemisphere and in Africa. Although sometimes confused with herons, cranes are more closely related to rails and limpkins. & utility equipment volumes and a $1.1 million decrease in material handling equipment revenue due mainly to fewer large truck sales compared to last year.Parts and service revenues increased $1.6 million, or 11%, as a result of targeted revenue building initiatives in all sectors.Earnings increased $1.3 million, as the positive impact of higher sales volumes more than offset the reduced margins resulting from a higher percentage of total revenues being derived de·rive
v. de·rived, de·riv·ing, de·rives

v.tr.
1. To obtain or receive from a source.

2. from lower margin equipment revenues and a $0.7 million increase in selling and administrative costs administrative costs,
n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. associated with increased sales volume compared to last year.

- In eastern Canada revenues decreased $8.1 million quarter-over-quarter, due to a $7.9 million decrease in equipment volumes and a $0.2 million decrease in parts and service revenues. A $5.1 million or 30% increase in forestry and construction equipment sales was more than offset by an $8.9 million reduction in crane and utility equipment volumes resulting from fewer deliveries to provincial Provincial has several meanings and may refer to:

Provincial examinations: Bi-annual province-wide examinations for students between the grades of 10 to 12 in the province of British Columbia
Anything related to a province, a formal geographical division;

hydro hy·dro
adj.
Hydroelectric.

n. pl. hy·dros
1. Hydroelectric power.

2. A hydroelectric power plant. utilities, a $3.2 million reduction in mining equipment revenues due to the sale of a large LeTourneau loader A program routine that copies a program into memory for execution. in 2003, and a $1.1 million decrease in material handling equipment revenues compared to last year.Earnings increased by $0.4 million as higher margins as a result of the favourable impact of the stronger Canadian dollar on U.S. dollar parts purchases and a lower equipment obsolescence ob·so·les·cent
adj.
1. Being in the process of passing out of use or usefulness; becoming obsolete.

2. Biology Gradually disappearing; imperfectly or only slightly developed. provision, more than offset the impact of lower volumes and higher selling and administrative costs compared to last year.

On October October: see month. 7, 2004, the Company completed an $0.8 million acquisition of a JCB JCB
Noun

trademark, Brit a large machine used in building, that has a shovel on the front and a digger arm on the back [initials of Joseph Cyril Bamford, its manufacturer]

JCB® n abbr distributor based in southwestern Ontario Southwestern Ontario is a region of the Canadian province of Ontario, centred on the city of London. It extends north to south from the Bruce Peninsula on Lake Huron to the Lake Erie shoreline, and east to south-west roughly from Kitchener to Windsor. .It is anticipated this acquisition will increase revenues by more than $4 million annually.The JCB line supplements this segment's Canada-wide distribution of the Hitachi construction excavator line.

The Company has recently received two large mining equipment supply and service orders. Wajax has received an order from North American Construction Group ("NACG NACG National Alliance for Choice in Giving ")for fifteen 330 ton Hitachi mining trucks and two 800 ton Hitachi hydraulic shovels over the next sixteen months for use in a major oil sands project in the Fort McMurray, Alberta area. The Company also expects to enter into a long-term parts support agreement with NACG for this equipment. The Company will also supply Elk Valley Coal Corporation, four pieces of LeTourneau mining equipment over the next six months. In addition the equipment will be operated through an eight year product support program.Total sales value for the equipment and product support for both of these customers is estimated to be approximate ap·prox·i·mate
v.
To bring together, as cut edges of tissue.

adj.
1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate.

2. Close together. $157 million over the life of the agreements, with the equipment sales value equal to approximately one half of the total.

Effective March 1, 2005, the Company will phase out its distribution of Timberjack forestry products in northern Ontario, Manitoba and the Maritimes.To replace this line, the Company has secured distribution rights for the Direct Technologies line of tracked feller bunchers A feller buncher is a large logging machine with an attachment that cuts trees in place. It consists of a standard heavy equipment base with a tree-grabbing device furnished with a circular saw or a shear - a pinching device designed to cut small trees off at the base. and harvesters, and the Logset forwarder Forwarder

Acts as a travel agent for cargo. A forwarder specializes in arranging the transport and completing required shipping documentation. Some are affiliated with NVOCC services. In the United States they are licensed by the Federal Maritime Commission. and wheeled harvester harvester, farm machine that mechanically harvests a crop. Small-grain harvesting has been mechanized to a certain extent since early times. In the modern period the first harvester to gain general acceptance was made by Cyrus McCormick in 1831 (see reaper). line for most of Canada. As these two lines are relatively new to the Canadian market place, replacing the Timberjack revenues will not be immediate; however, they give the Company access to a much larger portion of the Canadian forestry market.Revenues from the Timberjack forestry line in 2004 were approximately $35 million. The company estimates that this change will reduce 2005 revenue and earnings by approximately $15 million and $1.5 million respectively.

Industrial Components

for the three months ended December 31                    2004   2003
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Canada - Kinecor                                         $65.4  $57.5
United States - Spencer                                  $12.5  $11.2
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Gross revenue                                            $77.9  $68.7
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Canada - Kinecor                                          $2.7   $1.1
United States - Spencer                                   $0.4 ($0.9)
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Segment earnings                                          $3.1   $0.2
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for the year ended December 31                            2004   2003
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Canada - Kinecor                                        $253.0 $229.0
United States - Spencer                                  $56.8  $51.1
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Gross revenue                                           $309.8 $280.1
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Canada - Kinecor                                          $7.6   $4.2
United States - Spencer                                   $1.1 ($2.9)
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Segment earnings                                          $8.7   $1.3
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Revenues increased 13% in the quarter to $77.9 million from $68.7 million in 2003.The strengthening Canadian dollar relative to the U.S. dollar had the effect of decreasing Industrial Components revenues by $2.5 million for the quarter.Earnings of $3.1 million increased $2.9 million compared to $0.2 million the previous year. For the year ended December 31, 2004, revenue increased 11% to $309.8 million and segment earnings increased $7.4 million to $8.7 million.

The following factors contributed to the quarterly results:

- Total revenues in Kinecor increased 14% to $65.4 million in 2004 as all regions across Canada realized increased volumes. Bearings and power transmission parts sales increased $4.5 million as a result of personnel additions to the sales force in western Canada, stronger sales in eastern Canada's steel and forestry sectors, and new branches in Rimouski, Quebec Rimouski is a Canadian city (ville) on the center part of Bas-Saint-Laurent region in eastern Quebec, located on the south shore of the Saint Lawrence River at the mouth of the Rimouski River, and km ( mi) north-east of Quebec City. and Guelph, Ontario Guelph (IPA: gwɛlf) (population 114,943^[1]) is a city located in the Southwestern region of Ontario, Canada. compared to last year. Hydraulics hydraulics, branch of engineering concerned mainly with moving liquids. The term is applied commonly to the study of the mechanical properties of water, other liquids, and even gases when the effects of compressibility are small. parts and service revenues increased by $3.0 million, or 19%, as strong results in western Canada's oil and gas sector were supplemented by increases in eastern Canada resulting from the acquisition of PMDF PMDF Pascal Memo Distribution Facility
PMDF Parkinson’s and Movement Disorders Foundation
PMDF Perfect Mendelsohn Difference Family
PMDF Pre-Metal Dielectric Film in late 2003 and the opening of the Guelph Guelph (gwĕlf), city (1991 pop. 87,976), S Ont., Canada, on the Speed River. It is an industrial and agricultural center located in one of Canada's most densely populated regions. branch.A margin increase of 2.7 percentage points was achieved primarily through increases in volume related supplier rebates and lower freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers.

The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or costs.Earnings increased $1.6 million to $2.7 million as improved volumes combined with higher margins across all regions more than offset the negative impact of higher selling and administrative expenses.Selling and administrative expenses increased by $1.9 million quarter-over-quarter primarily as a result of additional personnel costs required to support the increased volumes, new branches, and additional headcount head count or head·count
n.
1. The act of counting people in a particular group.

2. The number of people counted in this way.

Noun 1. associated with the PMDF acquisition.

- Revenues in Spencer Spencer, city (1990 pop. 11,066), seat of Clay co., NW Iowa, on the Little Sioux River; inc. 1880. The city lies in a fertile farm area. Beef is processed, and Spencer's manufactures include work clothes, machinery, prefabricated buildings, and metal products. , a U.S. based hydraulics business, increased 12% (20% on a U.S. dollar basis) to $12.5 million compared to $11.2 million last year, due principally to higher parts sales to OEMs and increased mining parts and service revenues.Earnings for the quarter increased $1.3 million to $0.4 million from a loss of $0.9 million in 2003.The earnings improvement was the result of the positive volume variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial.

In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality combined with improved margins primarily attributable attributable

emanating from or pertaining to attribute.

attributable proportion
see attributable risk (below).

attributable risk to increased growth related supplier rebates.

Diesel Engines

for the three months ended December 31                    2004   2003
---------------------------------------------------------------------
Equipment sales                                           21.4   19.4
Parts and service                                         25.8   26.3
---------------------------------------------------------------------
Gross revenue                                            $47.2  $45.7
---------------------------------------------------------------------
Segment earnings                                          $4.7   $5.1
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for the year ended December 31                            2004   2003
---------------------------------------------------------------------
Equipment sales                                           73.5   63.1
Parts and service                                         98.2  103.8
---------------------------------------------------------------------
Gross revenue                                           $171.7 $166.9
---------------------------------------------------------------------
Segment earnings                                         $15.2  $15.7
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Revenue increased $1.5 million, or 3%, to $47.2 million in the fourth quarter of 2004 while earnings declined $0.4 million to $4.7 million compared to $5.1 million last year. The strengthening Canadian dollar relative to the U.S. dollar had the effect of decreasing Diesel Engine revenues by $1.1 million for the quarter. For the twelve months ended December 31, 2004, revenues increased $4.8 million to $171.7 million, while earnings decreased $0.5 million from last year's level of $15.7 million.The following events affected quarterly revenue and earnings:

- Revenues at the Waterous operation in Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. increased $0.8 million compared to 2003. Higher equipment sales in the oil and gas sector and increased service revenues from increased truck shop activity, were offset by fewer engine rebuilds and a decrease in part sales to Freightliner There are several entries concerning Freightliner:

For the Freightliner truck company, see Freightliner LLC
For the British railway company, see Freightliner (UK)
For a cargo ship sailing on a regular schedule, see Freight liner (ship)

truck dealers.

- Revenues at the Company's Quebec Quebec, city, Canada
Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. and Maritimes operation, Detroit Detroit, city, United States
Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. Diesel-Allison Canada East Canada East
or Lower Canada

Region of Canada now known as Quebec. In 1791–1841 it was known as Lower Canada and in 1841–67 as Canada East. , increased $0.7 million as a $1.8 million increase in generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. set equipment sales due to a large delivery to a major telecom company, more than offset lower parts sales to Freightliner truck dealers.

- Segment earnings decreased $0.4 million to $4.7 million in the quarter as the positive impact of higher volumes was offset by a decrease in margins and a $0.3 million increase in selling and administrative costs due to higher personnel costs in western Canada.

SELECTED QUARTERLY INFORMATION

                            2004                        2003(a)
---------------------------------------------------------------------
                   Q4     Q3     Q2     Q1     Q4     Q3     Q2    Q1
---------------------------------------------------------------------
Revenue        $249.2 $230.0 $238.1 $210.9 $230.9 $207.8 $227.0 218.3
Net earnings      6.0    5.2    4.6    2.5    3.4    2.6    2.5   1.1
Earnings per
share - Basic   $0.38  $0.33  $0.29  $0.16  $0.22  $0.17  $0.16 $0.07
      - Diluted $0.37  $0.33  $0.28  $0.16  $0.22  $0.16  $0.16 $0.07
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(a) Restated. See Note 2 in the Q4 2004 Quarterly Financial
    Statements.

A discussion of the Company's previous quarterly results can be found in the Company's quarterly Management's Discussion & Analysis reports available on SEDAR SEDAR System for Electronic Document Analysis and Retrieval
SEDAR Southeast Data, Assessment, and Review at www.sedar.com.

LIQUIDITY AND CAPITAL RESOURCES

The Company generated $21.0 million of cash before financing activities in the fourth quarter of 2004 compared to $40.2 million in the fourth quarter of 2003.For the year ended December 31, 2004 cash inflows before financing activities amounted to $13.2 million compared to $68.2 million in 2003.

Cash provided by operating activities amounted to $24.8 million in the fourth quarter of 2004, with $9.7 million generated from operating earnings Operating Earnings

Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue.

Notes:
Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before and $15.1 million from changes in non-cash working capital. Significant components of the $15.1 million decrease in working capital are described as follows:

- Inventory increased by $4.0 million due mainly to an increase in Mobile Equipment's inventory to support the new JCB line, and a general increase in all segments to support higher sales volumes.

- Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. increased by $17.2 million primarily as a result of higher inventory levels and accruals.

- Income taxes payable increased $2.0 million due to current taxes payable exceeding tax installments made in the quarter.

For the twelve months ended December 31, 2004 cash provided by operating activities amounted to $23.3 million and included $31.1 million of cash from operating earnings net of a $7.8 million increase in non-cash working capital excluding the impact of changes in foreign currency translation.

Working capital, exclusive of funded debt and cash, decreased $17.8 million to $122.7 million at December 31, 2004 from $140.5 million at September 30, 2004.The decrease is due to the cash flow factors listed above and the decrease in the quarter-end U.S. dollar exchange rate compared to the September 30, 2004 rate.

The Company invested a net amount of $3.8 million of the cash provided by operating activities into operations during the fourth quarter of 2004. The most significant investing activities were $1.8 million of lift truck rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. fleet additions in Mobile Equipment, $1.4 million for other various capital asset additions and the $0.8 million acquisition of the JCB distributor based in southwestern Ontario.

Debt, net of cash, of $26.2 million decreased $23.1 million compared to September 30, 2004.Of this decrease, $3.0 million resulted from the translation of the U.S. senior notes into Canadian dollars at a lower exchange rate compared to last quarter.The Company's debt to equity ratio decreased to 0.13:1 at December 31, 2004 compared to 0.26:1 at September 30, 2004.

During the quarter, the Company renewed re·new
v. re·newed, re·new·ing, re·news

v.tr.
1. To make new or as if new again; restore: renewed the antique chair.

2. its $20 million 364-day revolving secured bank borrowing facility, which will expire expire /ex·pire/ (ek-spi´er)
1. to exhale.

2. to die.

ex·pire
v.
1. To breathe one's last breath; die.

2. To exhale. December 16, 2005.Borrowing capacity under the facility is dependent upon the level of the Company's inventories on hand and the outstanding trade accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . This facility bears floating interest rates at a margin over Canadian dollar and U.S. dollar bankers' acceptances A bankers' acceptance, or BA, is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the .

At December 31, 2004, the Company had utilized $4.0 million (represented entirely by letters of credit) of the $20 million bank facility.It is expected that the cash on-hand of $49.4 million at year-end year-end also year·end
n.
The end of a year.

adj.
Occurring or done at the end of the year: a year-end audit.

Noun 1. along with the $20 million bank facility and cash generated from earnings will provide sufficient cash flow to meet the Company's short-term Short-term

Any investments with a maturity of one year or less.

short-term

1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. cash requirements and longer term growth initiatives.

The Mobile Equipment segment had possession of $57.3 million of consigned inventory from a major manufacturer at December 31, 2004, compared to $38.8 million the previous year.This inventory is not included in the Company's inventory as the manufacturer has title to the inventory.

The Company enters into hedges of its foreign currency exposures on a portion of its U.S. dollar-denominated senior notes by entering into offsetting U.S dollar forward contracts.On March 31, 2004 the Company entered into a short-term foreign currency forward contract to buy $30 million U.S dollars on March 31, 2005 to offset the effect of foreign exchange gains or losses on the portion of its U.S dollar-denominated senior notes that does not form a part of the hedge against the Company's investment in its U.S. self-sustaining self-sus·tain·ing
adj.
Able to sustain oneself or itself independently.

self-sus·tain operations.The foreign currency forward contracts, valued using prevailing currency exchange rates, have been recognized on the balance sheet.

During the quarter the Company paid a dividend of $0.04 per share and will pay a dividend of $0.07 per share on March 31, 2005, to shareholders of record on March 15, 2005.No dividends on common shares were paid in 2003.

SHARE CAPITAL

During the quarter, 18,000 stock options were exercised with a weighted-average exercise price of $4.71 per share. The following is a summary of the changes in share capital and options.

---------------------------------------------------------------------
Issued and fully paid common shares:         Number of Shares  Amount
---------------------------------------------------------------------
September 30, 2004                                 15,721,460  $102.3
Issued                                                 18,000     0.1
---------------------------------------------------------------------
December 31, 2004                                  15,739,460  $102.4
---------------------------------------------------------------------

Year to date, the Company has issued employee stock options to purchase 141,570 shares with a weighted-average exercise price of $10.70 and weighted average life of 9.1 years as of the date of issuance.No options have expired ex·pire
v. ex·pired, ex·pir·ing, ex·pires

v.intr.
1. To come to an end; terminate: My membership in the club has expired.

2. during the year.The following table summarizes the status of the stock option plan:

Weighted
                                                     Number   Average
                                                         of  Exercise
                                                     Shares     Price
---------------------------------------------------------------------
Outstanding as at December 31, 2004                 843,070     $6.30
---------------------------------------------------------------------

CHANGES IN ACCOUNTING POLICY

Hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. Relationships

Effective January January: see month. 1, 2004, the Company adopted the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. ("CICA CICA Competition In Contracting Act of 1984 (USA)
CICA Canadian Institute of Chartered Accountants
CICA Competition In Contracting Act
CICA Criminal Injuries Compensation Authority (UK) ") Accounting Guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. AcG-13 "Hedging Relationships", which requires assessment of new and existing hedging relationships to determine whether they satisfy the conditions of hedge accounting Why is hedge accounting necessary?
Many financial institutions and corporate businesses (entities) use derivative financial instruments to hedge their exposure to different risks (eg interest rate risk, foreign exchange risk, commodity risk, etc). .The Company is satisfied that all hedging relationships existing at January 1, 2004 and all new hedging relationships entered into during the quarter and year were documented and deemed effective at inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. as well as effective on a prospective and retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question.

A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a basis at December 31, 2004.Hedge accounting has been applied for all hedging relationships.

Revenue Recognition

Effective January 1, 2004, the Company adopted CICA EIC-141 "Revenue Recognition".This abstract provides interpretive in·ter·pre·tive also in·ter·pre·ta·tive
adj.
Relating to or marked by interpretation; explanatory.

in·terpre·tive·ly adv. guidance on the application of existing standards on revenue recognition. There was no impact on these consolidated financial statements upon adoption of the abstract as the Company had previously accounted for revenue recognition in the manner required by this guidance.

Multiple Deliverables

Effective January 1, 2004, the Company adopted the CICA EIC-142 "Revenue Arrangements with Multiple Deliverables".This abstract addresses certain aspects of the accounting for arrangements under which a vendor will perform multiple revenue-generating activities. In particular, the abstract addresses how to determine whether an arrangement contains more than one unit of accounting and how to allocate To reserve a resource such as memory or disk. See memory allocation. the arrangement consideration among separate units of accounting.Management evaluates the application of this abstract to these types of transactions on an individual basis when they occur.There has not been a significant change in the way management accounts for these types of arrangements.

Separately Priced Extended Warranty The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. and Product Maintenance Contracts

Effective January 1, 2004, the Company adopted the CICA EIC-143 "Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts".This abstract addresses how revenue and costs from separately priced extended warranty or product maintenance contracts are to be recognized and is effective prospectively for contracts entered into after December 17, 2003.Revenues should be deferred and recognized in income on a straight-line straight-line
adj.
1. Lying in a straight line.

2. Relating to a device whose linkage produces or copies motion in straight lines.

3. basis over the contract period except in those circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or in which sufficient historical evidence indicates that the costs of performing services under the contract are incurred on other than a straight-line basis. In those circumstances, revenue should be recognized over the contract period in proportion to the costs expected to be incurred in performing the services under the contract.The Company is continuing to recognize revenue for separately priced extended warranty or product maintenance contracts over the contract period in proportion to the costs expected to be incurred in performing the services under the contract unless insufficient in·suf·fi·cient
adj.
1. Not sufficient.

2. Incapable of proper functioning. historical evidence exists to support an other than straight-line pattern.

Vendor Rebates

Effective September 30, 2004, the Company adopted CICA EIC-144 "Accounting by a Customer (Including a Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. ) For Certain Consideration Received From a Vendor".The abstract requires a customer to record cash consideration received from a vendor as a reduction in the price of the vendor's products and reflect it as a reduction to cost of goods sold Cost of goods sold

The total cost of buying raw materials, and paying for all the factors that go into producing finished goods.

cost of goods sold and related inventory when recognized in the income statement and balance sheet.The abstract must be applied retroactively ret·ro·ac·tive
adj.
Influencing or applying to a period prior to enactment: a retroactive pay increase.

[French rétroactif, from Latin for annual and interim periods ending after August 15, 2004.This impact has resulted in a reduction to opening retained earnings Retained Earnings

The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. of $482 thousand for the full year ending December 31, 2004.For the 3 months ending December 31, 2004 and the 12 months ending December 31, 2004 the implementation of the new standard has resulted in a $1.2 million reduction of inventory and a $241 thousand reduction of net earnings with a corresponding $0.01 reduction in earnings per share quarter to date and $0.02 reduction in earnings per share year to date.The company has restated its 2003 comparative results and balances in its financial statements. The implementation of the new standard has resulted in a reduction to opening retained earnings for the 3 months ending December 31, 2003 of $490 thousand and for the 12 months ending December 31, 2003 of $491 thousand.The impact on balance sheet accounts as of December 31, 2003 was a decrease in inventory of $777 thousand and an increase in future income taxes of $295 thousand.The net earnings for the 3 months ending December 31, 2003 and the 12 months ending December 31, 2003 reflect a nominal Trifling, token, or slight; not real or substantial; in name only.

Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental.

NOMINAL. Relating to a name. increase.

Variable Interest Entities

Effective October 1, 2004, the Company elected e·lect
v. e·lect·ed, e·lect·ing, e·lects

v.tr.
1. To select by vote for an office or for membership.

2. To pick out; select: elect an art course. to early adopt AcG-15 "Consolidation of Variable Interest Entities" which is effective for periods beginning on or after November November: see month. 1, 2004. Upon adoption of this guideline the Company has determined that it has a variable interest in Wajax Finance, a "private label" financing operation of CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously.
Which past endurance sting the tender cit.
- Emerson. Equipment Financing Canada, which is used primarily to provide customers of the Mobile Equipment segment with equipment financing.In addition, the Mobile Equipment segment leases its long-term lift truck rental fleet through Wajax Finance and will periodically finance inventory with Wajax Finance on a non-interest bearing basis.The Company's association with Wajax Finance is limited to a sharing of annual profits; any losses are financed by CIT and deducted de·duct
v. de·duct·ed, de·duct·ing, de·ducts

v.tr.
1. To take away (a quantity) from another; subtract.

2. To derive by deduction; deduce.

v.intr. from future profit distributions to the Company.In the event the Wajax Finance program is terminated ter·mi·nate
v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates

v.tr.
1. To bring to an end or halt: , the Company's liability would be limited to amounts owing to owing to
prep.
Because of; on account of: I couldn't attend, owing to illness.

owing to prep → debido a, por causa de  Wajax Finance for the rental fleet, any inventory financed at the time of termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. and any contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured.

The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the contractual obligations. As the Company is not the primary beneficiary beneficiary

Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. of Wajax Finance, its financial position and results of operations have not been consolidated in these financial statements and the Company will continue to account for the residual returns Residual Return

Return independent of the benchmark. The residual return is the return relative to beta times the benchmark return. To be exact, an asset's residual return equals its excess return minus beta times the benchmark excess return. of Wajax Finance as earned.

Asset Retirement Obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1].

Firms must recognize the ARO liability in the period it was acquired, generally acquisition.

Effective January 1, 2004, the Company adopted the CICA Handbook

For the handbook about Wikipedia, see .

This article is about reference works. For the subnotebook computer, see .

"Pocket reference" redirects here.

section 3110 "Asset Retirement Obligations".This section requires a company to capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. the fair market value of the costs to decommission de·com·mis·sion
tr.v. de·com·mis·sioned, de·com·mis·sion·ing, de·com·mis·sions
To withdraw (a ship, for example) from active service. an asset, with an offsetting liability. The implementation of the new standard has resulted in a reduction to opening retained earnings of $450 thousand for the full year ending December 31, 2004.The impact on the Company's consolidated statement of earnings for the three months and full year ending December 31, 2004 and comparative periods was negligible

This article or section is written like a personal reflection or and may require .
Please [ improve this article] by rewriting this article or section in an . .The asset retirement obligations pertain to pertain to
verb relate to, concern, refer to, regard, be part of, belong to, apply to, bear on, befit, be relevant to, be appropriate to, appertain to operating leases Operating Lease

A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.

Notes:
An operating lease is not capitalized it is accounted for as a rental expense. of branch facilities where certain clauses require premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person to be returned to their original state at the end of the lease term. The total estimated undiscounted cash flows required to settle these obligations amount to $1,025 thousand.The Company adopted the section on a retroactive basis beginning on October 1, 2004. As a result, figures for the consolidated balance sheets consolidated balance sheet

A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as at September 30, 2004 were restated as follows: a $7 thousand increase in fixed assets fixed assets npl → activo sg fijo

fixed assets npl → immobilisations fpl

fixed assets fix npl → , an increase in future income taxes of $283 thousand, an increase in accrued liabilities of $749 thousand and a decrease in retained earnings of $459 thousand. The implementation of the new standard has resulted in a reduction to opening retained earnings for the 3 months ending December 31, 2003 of $447 thousand and for the 12 months ending December 31, 2003 of $437 thousand.The impact on balance sheet accounts as of December 31, 2003 was an increase in fixed assets of $13 thousand, an increase in accounts payable and accrued liabilities of $740 thousand and an increase in future income taxes of $277 thousand.

Impairment Impairment

1. A reduction in a company's stated capital.

2. The total capital that is less than the par value of the company's capital stock.

Notes:
1. This is usually reduced because of poorly estimated losses or gains.

2. of Long Lived Assets

Effective January 1, 2004, the Company adopted CICA Handbook section 3063 "Impairment of Long-lived long-lived
adj.
1. Having a long life: a long-lived aunt.

2. Lasting a long time; persistent: a long-lived rumor.

3. Assets".This section establishes standards for the recognition, measurement and disclosure of the impairment of long-lived assets held for use. Accounting for the potential impairment of long-lived assets held for use is a two-step process with the first step determining when impairment should be recognized, and the second step measuring the amount of the impairment. An impairment loss is recognized when the carrying amount of an asset held for use exceeds the sum of the undiscounted cash flows expected from its use and eventual disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of . The impairment loss is measured as the amount by which the asset's carrying amount exceeds its fair value. The effect of adopting the new recommendations did not have an impact on the consolidated financial statements.

RISKS AND UNCERTAINTIES

A Statement of Claim has been served naming the Company and its subsidiary Wajax Industries Limited as defendants in proceedings under the Class Proceedings Act of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography
.The action arises out of the conversion on January 1, 2001 of the Employee Pension Plan from defined benefit to defined contribution, the taking of contribution holidays and the payment of pension administration expenses from the pension fund. The Company had previously evaluated the claims it anticipated could be articulated ar·tic·u·la·ted
adj.
Characterized by or having articulations; jointed. and concluded such claims would be unlikely to succeed.Management has assessed the facts and arguments pleaded and continues to believe the claims would be unlikely to succeed.

For further details about the Company's risks and uncertainties, please refer to the Management's Discussion and Analysis for the year ended December 31, 2003 included in the Company's 2003 Annual Report.

OUTLOOK

In 2004 the Company surpassed its profitability objectives and recorded its best earnings performance in seven years. Management believes that each of its three core businesses has a strong management team and a sound plan for future growth. While many of the profit improvement initiatives outlined in previous years did result in greater profitability in 2004, the Company also enjoyed strong industry fundamentals in a number of sectors. The energy sector in western Canada, along with base metal mining throughout Canada, benefiting from increased world-wide demand and improved pricing, have increased their requirement for product supplied by all three of the Company's core businesses. As well, the booming Canadian housing market has continued to positively impact demand for product from the Mobile Equipment business.

Going into 2005, management expects these positive economic trends to continue. With the expectation of strong industry fundamentals and the execution of strategic initiatives outlined for each business, management expects to continue to grow revenue and improve profitability overall, with particular emphasis on building revenue and earnings in the Industrial Components segment.

FORWARD-LOOKING STATEMENTS forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.

This Management's Discussion and Analysis contains forward-looking information that involves assumptions and estimates that may not be realized and other risks and uncertainties.The inclusion of this information herein should not be regarded as a representation by the Company or any other person that the anticipated results will be achieved and investors are cautioned not to place undue reliance on such information.

Additional information, including the Company's Annual Report and Annual Information Form, may be found on SEDAR at www.sedar.com.

WAJAX LIMITED

Unaudited Consolidated Financial Statements

For the twelve months ended December 31, 2004

Notice required under National Instrument 51-102, "Continuous Disclosure Obligations" Part 4.3(3) (a).

The attached consolidated financial statements have been prepared by Management of Wajax Limited and have not been reviewed by the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together of Wajax Limited.

WAJAX LIMITED
CONSOLIDATED BALANCE SHEETS
(unaudited)

---------------------------------------------------------------------
---------------------------------------------------------------------

                                              December 31 December 31
(in thousands of dollars)                            2004        2003
---------------------------------------------------------------------
                                                           (restated
                                                              note 2)
Current Assets
 Cash and cash equivalents                        $49,409     $45,395
 Accounts receivable                              115,207     106,027
 Inventories                                      161,046     142,905
 Future income taxes                                6,132       6,829
 Prepaid expenses and other recoverable amounts     3,963       2,353
---------------------------------------------------------------------
                                                  335,757     303,509
---------------------------------------------------------------------

Non-Current Assets
 Rental equipment                                  16,362      16,205
 Capital assets                                    30,251      31,868
 Goodwill and other assets                         54,621      55,386
 Future income taxes                                2,851       2,772
---------------------------------------------------------------------
                                                  104,085     106,231
---------------------------------------------------------------------
                                                 $439,842    $409,740
---------------------------------------------------------------------
---------------------------------------------------------------------

Current Liabilities
 Accounts payable and accrued liabilities        $155,730    $140,816
 Income taxes payable                               7,935       1,348
 Current portion of long-term debt                  4,683       4,267
---------------------------------------------------------------------
                                                  168,348     146,431
---------------------------------------------------------------------

Non-Current Liabilities
 Future income taxes                                3,545       2,745
 Long-term pension liability                        2,080       2,052
 Long-term debt                                    70,884      79,838
---------------------------------------------------------------------
                                                   76,509      84,635
---------------------------------------------------------------------

Shareholders' Equity
 Share capital                                    102,390     102,212
 Contributed surplus                                  373          63
 Retained earnings                                 92,222      76,399
---------------------------------------------------------------------
                                                  194,985     178,674
---------------------------------------------------------------------
                                                 $439,842    $409,740
---------------------------------------------------------------------
---------------------------------------------------------------------


WAJAX LIMITED
CONSOLIDATED STATEMENTS OF EARNINGS
AND RETAINED EARNINGS
(unaudited)

---------------------------------------------------------------------
---------------------------------------------------------------------
                             Three months ended            Year ended
                                    December 31           December 31
(in thousands of dollars, --------------------- ---------------------
 except per share data)         2004       2003       2004       2003
---------------------------------------------------------------------
                                      (restated             (restated
                                        note 2)               note 2)
Revenue                     $249,200   $230,905   $928,180   $883,967
Cost of sales                192,454    181,775    715,490    688,914
---------------------------------------------------------------------
---------------------------------------------------------------------

Gross profit                  56,746     49,130    212,690    195,053
Selling and
 administrative expenses      44,909     39,964    174,389    166,368
---------------------------------------------------------------------

Earnings before interest
 and income taxes             11,837      9,166     38,301     28,685
Interest expense               1,690      2,368      7,481     10,858
---------------------------------------------------------------------

Earnings before income taxes  10,147      6,798     30,820     17,827
Income taxes - current         3,206      (171)     11,307      2,560
             - future            903      3,534      1,175      5,698
---------------------------------------------------------------------

Net earnings                  $6,038     $3,435    $18,338     $9,569

Retained earnings, beginning
 of period as reported        87,273     73,901     77,331     67,758

Impact of new accounting
 standards: (Note 2)
 Vendor Rebates                    -      (490)      (482)      (491)
 Asset Retirement Obligations  (459)      (447)      (450)      (437)
---------------------------------------------------------------------
Retained earnings, beginning
 of period, as restated       86,814     72,964     76,399     66,830

Dividends on common shares     (630)          -    (2,515)          -
---------------------------------------------------------------------
---------------------------------------------------------------------

Retained earnings,
 end of period               $92,222    $76,399    $92,222    $76,399
---------------------------------------------------------------------
---------------------------------------------------------------------

Earnings per share
 (Note 3) - basic              $0.38      $0.22      $1.17      $0.61
---------------------------------------------------------------------
---------------------------------------------------------------------
          - diluted            $0.37      $0.22      $1.14      $0.61
---------------------------------------------------------------------
---------------------------------------------------------------------

Number of common shares
 outstanding              15,739,460 15,696,960 15,739,460 15,696,960

Number of common share
 stock options outstanding   843,070    744,000    843,070    744,000

---------------------------------------------------------------------
---------------------------------------------------------------------


WAJAX LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

                                       Three months ended December 31
(in thousands of dollars)                              2004      2003
---------------------------------------------------------------------
                                                            (restated
                                                              note 2)
OPERATING ACTIVITIES

 Net earnings                                        $6,038    $3,435
 Items not affecting cash flows:
  Amortization
   - Rental equipment                                 1,137     1,298
   - Capital assets                                   1,273     1,374
   - Deferred expenses and intangible assets            250       271
  Pension expense - net of payments                      14       395
  Stock compensation expense (Note 4)                    79        63
  Future income taxes                                   903     3,666
---------------------------------------------------------------------
Cash flows before changes in non-cash
 working capital                                      9,694    10,502
---------------------------------------------------------------------

Changes in non-cash working capital:
 Accounts receivable                                  1,403     5,882
 Inventories                                        (3,999)    18,120
 Prepaid expenses and other recoverable amounts     (1,543)        66
 Accounts payable and accrued liabilities            17,200     8,472
 Income taxes payable                                 2,011     (262)
---------------------------------------------------------------------
                                                     15,072    32,278
---------------------------------------------------------------------
Cash flows provided by operating activities          24,766    42,780
---------------------------------------------------------------------

INVESTING ACTIVITIES
 Rental equipment additions                         (1,778)   (1,302)
 Rental equipment disposals                             227       561
 Capital asset additions                            (1,419)   (1,832)
 Proceeds on disposal of capital assets                  23       964
 Acquisition of business (Note 9)                     (845)   (1,004)
---------------------------------------------------------------------
                                                    (3,792)   (2,613)
---------------------------------------------------------------------
Cash flows before financing activities               20,974    40,167
---------------------------------------------------------------------

FINANCING ACTIVITIES
 Issuance of common shares on exercise of
  stock options (Note 4)                                 85         -
 Repayment of debt upon acquisition of business       (326)         -
 Repayment of debentures                            (1,325)   (1,216)
 Increase in deferred financing costs                  (50)     (275)
 Dividends paid                                       (630)         -
---------------------------------------------------------------------
                                                    (2,246)   (1,491)
---------------------------------------------------------------------
Cash flows before effect of foreign exchange         18,728    38,676
---------------------------------------------------------------------
 Effect of foreign exchange on translation
  adjustment                                            133     (231)
---------------------------------------------------------------------
Net change in cash and cash equivalents             $18,861   $38,445
---------------------------------------------------------------------

---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash equivalents - beginning of period     $30,548    $6,950
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash equivalents - end of period           $49,409   $45,395
---------------------------------------------------------------------
Cash flows provided by operating activities
 include the following:
---------------------------------------------------------------------
Interest paid                                        $2,446    $2,940
Income taxes paid                                    $1,177       $78
---------------------------------------------------------------------
Significant non-cash transaction:

Rental equipment transferred to inventory              $102      $239


WAJAX LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

                                               Year ended December 31
(in thousands of dollars)                              2004      2003
---------------------------------------------------------------------
                                                            (restated
                                                              note 2)
OPERATING ACTIVITIES
 Net earnings                                       $18,338    $9,569
 Items not affecting cash flows:
  Amortization
   - Rental equipment                                 4,385     4,268
   - Capital assets                                   5,194     6,553
   - Deferred expenses and intangible assets          1,130     1,048
  Pension expense - net of payments                     552     2,865
  Stock compensation expense (Note 4)                   310        63
  Future income taxes                                 1,175     5,291
---------------------------------------------------------------------
Cash flows before changes in non-cash
 working capital                                     31,084    29,657
---------------------------------------------------------------------

Changes in non-cash working capital:
 Accounts receivable                                (9,466)     7,238
 Inventories                                       (17,850)    33,855
 Prepaid expenses and other recoverable amounts     (1,613)     5,377
 Accounts payable and accrued liabilities            14,539   (3,610)
 Income taxes payable                                 6,592     4,693
---------------------------------------------------------------------
                                                    (7,798)    47,553
---------------------------------------------------------------------
Cash flows provided by operating activities          23,286    77,210
---------------------------------------------------------------------

INVESTING ACTIVITIES
 Rental equipment additions                         (6,663)   (7,819)
 Rental equipment disposals                           1,293     1,187
 Capital asset additions                            (3,782)   (4,520)
 Proceeds on disposal of capital assets                 138     3,132
 Acquisition of business (Note 9)                   (1,095)   (1,004)
---------------------------------------------------------------------
                                                   (10,109)   (9,024)
---------------------------------------------------------------------
Cash flows (used) before financing activities        13,177    68,186
---------------------------------------------------------------------

FINANCING ACTIVITIES
 Issuance of common shares on exercise of
  stock options (Note 4)                                178         -
 Decrease in long-term debt                               -  (25,691)
 Repayment of debt upon acquisition of business       (326)
 Repayment of debentures                            (4,267)   (3,888)
 Increase in deferred financing costs                  (50)     (275)
 Hedging activities (Note 5)                        (2,025)   (6,336)
 Dividends paid                                     (2,515)         -
---------------------------------------------------------------------
                                                    (9,005)  (36,190)
---------------------------------------------------------------------
Cash flows before effect of foreign exchange          4,172    31,996
---------------------------------------------------------------------
 Effect of foreign exchange on translation adjustment (158)     (158)
---------------------------------------------------------------------
Net change in cash and cash equivalent               $4,014   $31,838
---------------------------------------------------------------------

---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash equivalent - beginning of period      $45,395   $13,557
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash and cash equivalent - end of period            $49,409   $45,395
---------------------------------------------------------------------
Cash provided by operating activities included
 the following:
---------------------------------------------------------------------
Interest paid                                        $7,096    $9,582
Income taxes paid (received)                         $4,714  $(1,545)
---------------------------------------------------------------------
Significant non-cash transaction:

Rental equipment transferred to inventory              $828      $678


WAJAX LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabulated in thousands of dollars)
(unaudited)

Note 1 Significant accounting policies

The accounting policies used in the preparation of these unaudited interim consolidated financial statements conform with those used in the Company's annual consolidated financial statements except for the changes noted below (See Note 2).

These interim consolidated financial statements do not include all of the disclosures included in the Company's annual consolidated financial statements. Accordingly, these unaudited interim financial statements should be read in conjunction with the Company's annual consolidated financial statements as at and for the year ended December 31, 2003.

Note 2 Change in accounting policies

a. Hedging Relationships

Effective January 1, 2004, the Company adopted the Canadian Institute of Chartered Accountants ("CICA") Accounting Guideline AcG-13 "Hedging Relationships", which requires assessment of new and existing hedging relationships to determine whether they satisfy the conditions of hedge accounting.The Company is satisfied that all hedging relationships existing at January 1, 2004 and all new hedging relationships entered into during the quarter and year were documented and deemed effective at inception as well as effective on a prospective and retroactive basis at December 31, 2004.Hedge accounting has been applied for all hedging relationships.

b. Revenue Recognition

Effective January 1, 2004, the Company adopted CICA EIC-141 "Revenue Recognition".This abstract provides interpretive guidance on the application of existing standards on revenue recognition. There was no impact on these consolidated financial statements upon adoption of the abstract as the Company had previously accounted for revenue recognition in the manner required by this guidance.

c. Multiple Deliverables

Effective January 1, 2004, the Company adopted the CICA EIC-142 "Revenue Arrangements with Multiple Deliverables".This abstract addresses certain aspects of the accounting for arrangements under which a vendor will perform multiple revenue-generating activities. In particular, the abstract addresses how to determine whether an arrangement contains more than one unit of accounting and how to allocate the arrangement consideration among separate units of accounting.Management evaluates the application of this abstract to these types of transactions on an individual basis when they occur.There has not been a significant change in the way management accounts for these types of arrangements.

d. Separately Priced Extended Warranty and Product Maintenance Contracts

Effective January 1, 2004, the Company adopted the CICA EIC-143 "Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts".This abstract addresses how revenue and costs from separately priced extended warranty or product maintenance contracts are to be recognized and is effective prospectively for contracts entered into after December 17, 2003.Revenues should be deferred and recognized in income on a straight-line basis over the contract period except in those circumstances in which sufficient historical evidence indicates that the costs of performing services under the contract are incurred on other than a straight-line basis. In those circumstances, revenue should be recognized over the contract period in proportion to the costs expected to be incurred in performing the services under the contract.The Company is continuing to recognize revenue for separately priced extended warranty or product maintenance contracts over the contract period in proportion to the costs expected to be incurred in performing the services under the contract unless insufficient historical evidence exists to support an other than straight-line pattern.

e. Vendor Rebates

Effective September 30, 2004, the Company adopted CICA EIC-144 "Accounting by a Customer (Including a Reseller) For Certain Consideration Received From a Vendor".The abstract requires a customer to record cash consideration received from a vendor as a reduction in the price of the vendor's products and reflect it as a reduction to cost of goods sold and related inventory when recognized in the income statement and balance sheet.The abstract must be applied retroactively for annual and interim periods ending after August 15, 2004.This impact has resulted in a reduction to opening retained earnings of $482 thousand for the full year ending December 31, 2004.For the 3 months ending December 31, 2004 and the 12 months ending December 31, 2004 the implementation of the new standard has resulted in a $1.2 million reduction of inventory and a $241 thousand reduction of net earnings with a corresponding $0.01 reduction in earnings per share quarter to date and $0.02 reduction in earnings per share year to date.The company has restated its 2003 comparative results and balances in its financial statements. The implementation of the new standard has resulted in a reduction to opening retained earnings for the 3 months ending December 31, 2003 of $490 thousand and for the 12 months ending December 31, 2003 of $491 thousand.The impact on balance sheet accounts as of December 31, 2003 was a decrease in inventory of $777 thousand and an increase in future income taxes of $295 thousand.The net earnings for the 3 months ending December 31, 2003 and the 12 months ending December 31, 2003 reflect a nominal increase.

f. Variable Interest Entities

Effective October 1, 2004, the Company elected to early adopt AcG-15 "Consolidation of Variable Interest Entities" which is effective for periods beginning on or after November 1, 2004. Upon adoption of this guideline the Company has determined that it has a variable interest in Wajax Finance, a "private label" financing operation of CIT Equipment Financing Canada, which is used primarily to provide customers of the Mobile Equipment segment with equipment financing.In addition, the Mobile Equipment segment leases its long-term lift truck rental fleet through Wajax Finance and will periodically finance inventory with Wajax Finance on a non-interest bearing basis.The Company's association with Wajax Finance is limited to a sharing of annual profits; any losses are financed by CIT and deducted from future profit distributions to the Company.In the event the Wajax Finance program is terminated, the Company's liability would be limited to amounts owing to Wajax Finance for the rental fleet, any inventory financed at the time of termination and any contingent contractual obligations. As the Company is not the primary beneficiary of Wajax Finance, its financial position and results of operations have not been consolidated in these financial statements and the Company will continue to account for the residual returns of Wajax Finance as earned.

g. Asset Retirement Obligations

Effective January 1, 2004, the Company adopted the CICA Handbook section 3110 "Asset Retirement Obligations".This section requires a company to capitalize the fair market value of the costs to decommission an asset, with an offsetting liability. The implementation of the new standard has resulted in a reduction to opening retained earnings of $450 thousand for the full year ending December 31, 2004.The impact on the Company's consolidated statement of earnings for the three months and full year ending December 31, 2004 and comparative periods was negligible.The asset retirement obligations pertain to operating leases of branch facilities where certain clauses require premises to be returned to their original state at the end of the lease term. The total estimated undiscounted cash flows required to settle these obligations amount to $1,025 thousand.The Company adopted the section on a retroactive basis beginning on October 1, 2004. As a result, figures for the consolidated balance sheets as at September 30, 2004 were restated as follows: a $7 thousand increase in fixed assets, an increase in future income taxes of $283 thousand, an increase in accrued liabilities of $749 thousand and a decrease in retained earnings of $459 thousand. The implementation of the new standard has resulted in a reduction to opening retained earnings for the 3 months ending December 31, 2003 of $447 thousand and for the 12 months ending December 31, 2003 of $437 thousand.The impact on balance sheet accounts as of December 31, 2003 was an increase in fixed assets of $13 thousand, an increase in accounts payable and accrued liabilities of $740 thousand and an increase in future income taxes of $277 thousand.

h. Impairment of long-lived assets

Effective January 1, 2004, the Company adopted CICA Handbook section 3063 "Impairment of Long-lived Assets".This section establishes standards for the recognition, measurement and disclosure of the impairment of long-lived assets held for use. Accounting for the potential impairment of long-lived assets held for use is a two-step process with the first step determining when impairment should be recognized, and the second step measuring the amount of the impairment. An impairment loss is recognized when the carrying amount of an asset held for use exceeds the sum of the undiscounted cash flows expected from its use and eventual disposition. The impairment loss is measured as the amount by which the asset's carrying amount exceeds its fair value. The effect of adopting the new recommendations did not have an impact on the consolidated financial statements.

Note 3 Earnings per share

The following table sets forth the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of basic and diluted earnings per share diluted earnings per share

An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (in thousands, except per share information):

Quarter                                               2004       2003
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                            (restated
                                                              note 2)
Numerator for basic and diluted earnings per share:
 - net income                                       $6,038     $3,435

---------------------------------------------------------------------
Denominator for basic earnings per share :
 - weighted average shares                      15,731,619 15,696,960
---------------------------------------------------------------------
---------------------------------------------------------------------
Denominator for diluted earnings per share:
 - weighted average shares                      15,731,619 15,696,960
 - effect of dilutive employee stock options       428,509    214,943
---------------------------------------------------------------------
Denominator for diluted earnings per share      16,160,128 15,911,903
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic earnings per share                             $0.38      $0.22
---------------------------------------------------------------------
Diluted earnings per share                           $0.37      $0.22
---------------------------------------------------------------------
---------------------------------------------------------------------

Of the 843,070 (2003 - 744,000) stock options outstanding at the end of the period, 55,000 (2003 - 202,000) options with an exercise price of $13.34 (2003 - $7.34-$11.50) are excluded from the above calculations as they are currently anti-dilutive. These securities could potentially dilute di·lute
v.
To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water.

adj.
Thinned or weakened by diluting. earnings per share in future periods.

Year-to-date                                          2004       2003
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                            (restated
                                                              note 2)
Numerator for basic and diluted earnings per share:
 - net income                                      $18,338     $9,569
---------------------------------------------------------------------
Denominator for basic earnings per share :
 - weighted average shares                      15,713,115 15,696,960
---------------------------------------------------------------------
---------------------------------------------------------------------
Denominator for diluted earnings per share:
 - weighted average shares                      15,713,115 15,696,960
 - effect of dilutive employee stock options       356,357    108,610
---------------------------------------------------------------------
---------------------------------------------------------------------
Denominator for diluted earnings per share      16,069,472 15,805,570
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic earnings per share                             $1.17      $0.61
---------------------------------------------------------------------
Diluted earnings per share                           $1.14      $0.61
---------------------------------------------------------------------
---------------------------------------------------------------------

Of the 843,070 (2003 - 744,000) stock options outstanding at the end of the period, 120,000 (2003 - 202,000) options with an exercise price range of $10.22-$13.34 (2003 - $7.34-$11.50) are excluded from the above calculations as they are currently anti-dilutive. These securities could potentially dilute earnings per share in future periods.

Note 4 Stock-based compensation plans

During the quarter 18,000 (2003 - nil) stock options were exercised with a weighted-average exercise price of $4.71.The Company issued employee stock options to purchase 55,000 shares (2003 - 40,000) with an exercise price of $13.34 (2003 - $7.34) and a life of 10 years (2003 - 5 years).

Year to date, the Company issued employee stock options to purchase 141,570 (2003 - 110,000) shares with a weighted-average exercise price of $10.70 (2003 - $5.50) and weighted average life of 9.13 (2003 - 5.0) years as of the date of issuance.Employees of the Company exercised 42,500 (2003 - nil) stock options with a weighted-average exercise price of $4.19.No options expired during the year.

The Company recorded a compensation cost of $79 thousand for the quarter and $310 thousand year to date in respect of employee stock options granted after December 31, 2002.The Company had accounted for employee stock options using the intrinsic value Intrinsic Value

1. The value of a company or an asset based on an underlying perception of the value.

2. For call options, this is the difference between the underlying stock's price and the strike price. method prior to 2003 and accordingly has not recorded compensation cost for grants prior to this year.There would have been a reduction in net earnings of $18 thousand (2003 - $44 thousand) for the quarter and $110 thousand (2003 - $253 thousand) year to date and a nominal reduction in earnings per share (2003 - $0.01 reduction in basic and diluted earnings per share) if the Company had accounted for employee stock options issued in 2002 under the fair value method.The fair value of employee stock options is determined using the Black-Scholes option pricing model option pricing model

A mathematical formula for determining the price at which an option should trade. The model expresses the value of an option as a function of the value of the underlying asset, length of time until maturity, exercise price, yields on , adjusted for performance vesting Vesting

The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account.

Notes: criteria criteria (krītēr´ē

),
n. , using the following weighted average assumptions:

Risk free interest rate      3.76%
               Expected life                7.35 years
               Expected volatility          32%
               Expected dividends           2%

The weighted average fair value of the options issued during the quarter at the grant date was $4.23 (2003 - $2.80).The weighted average fair value of the options issued during the full year at the grant date was $3.71 (2003 - $2.00).

Note 5 Financial Instruments

The Company hedges its foreign currency exposures on a portion of its U.S. dollar-denominated senior notes by entering into offsetting U.S. dollar forward contracts. During the year, the Company had a $2.0 million loss on these hedging activities that was offset by a $2.0 million foreign currency gain on the U.S. dollar-denominated senior notes. At December 31, 2004 the Company has two short-term foreign currency forward contracts outstanding to buy a total of $30 million U.S. dollars on March 31, 2005.

Note 6 Employees' pension plans

Net pension plan expenses are as follows:

Quarter                                                   2004   2003
---------------------------------------------------------------------

---------------------------------------------------------------------
Net pension plan expense - defined benefit plans           $60    $86
Net pension plan expense - defined contribution plans      918    753
---------------------------------------------------------------------
                                                          $978   $839
---------------------------------------------------------------------
---------------------------------------------------------------------


Year-to-date
---------------------------------------------------------------------
---------------------------------------------------------------------
Net pension plan expense - defined benefit plans          $732   $292
Net pension plan expense - defined contribution plans    3,796  3,038
---------------------------------------------------------------------
                                                        $4,528 $3,330
---------------------------------------------------------------------
---------------------------------------------------------------------


Note 7 Segmented information

Quarter                                                2004      2003
---------------------------------------------------------------------
---------------------------------------------------------------------
Revenue                                                     (restated
                                                              note 2)
---------------------------------------------------------------------
---------------------------------------------------------------------
Mobile Equipment                                   $124,606  $117,233

Industrial Components
  - Canada                                           65,343    57,531
  - United States                                    12,515    11,158
---------------------------------------------------------------------
 Total Industrial Components                         77,858    68,689
---------------------------------------------------------------------
Diesel Engines                                       47,206    45,653
Segment eliminations                                  (470)     (670)
---------------------------------------------------------------------

Total consolidated                                 $249,200  $230,905
---------------------------------------------------------------------
---------------------------------------------------------------------

Segment Earnings (Loss)
---------------------------------------------------------------------
---------------------------------------------------------------------
Mobile Equipment                                     $6,901    $5,170
Industrial Components
  - Canada                                            2,725     1,104
  - United States                                       360     (916)
---------------------------------------------------------------------
 Total Industrial Components                          3,085       188
---------------------------------------------------------------------
Diesel Engines                                        4,657     5,085
Corporate costs and eliminations                    (2,806)   (1,277)
---------------------------------------------------------------------

Total consolidated                                  $11,837    $9,166
---------------------------------------------------------------------
---------------------------------------------------------------------
Interest expense, income taxes and all other corporate costs are not
allocated to business segments.


Year-to-date                                           2004      2003
---------------------------------------------------------------------
---------------------------------------------------------------------
Revenue                                                     (restated
                                                              note 2)
---------------------------------------------------------------------
---------------------------------------------------------------------
Mobile Equipment                                   $448,761  $438,856
Industrial Components
  - Canada                                          252,991   229,032
  - United States                                    56,802    51,060
---------------------------------------------------------------------
 Total Industrial Components                        309,793   280,092
---------------------------------------------------------------------
Diesel Engines                                      171,700   166,884
Segment Eliminations                                (2,074)   (1,865)
---------------------------------------------------------------------

Total consolidated                                $928,180   $883,967
---------------------------------------------------------------------
---------------------------------------------------------------------

Segment Earnings (Loss)
---------------------------------------------------------------------
---------------------------------------------------------------------
Mobile Equipment                                    $22,572   $18,254
Industrial Components
  - Canada                                            7,573     4,231
  - United States                                     1,147   (2,852)
---------------------------------------------------------------------
 Total Industrial Components                          8,720     1,379
---------------------------------------------------------------------
Diesel Engines                                       15,223    15,676
Corporate costs and eliminations                    (8,214)   (6,624)
---------------------------------------------------------------------

Total consolidated                                  $38,301   $28,685
---------------------------------------------------------------------
---------------------------------------------------------------------
Interest expense, income taxes and all other corporate costs are not
allocated to business segments.

Note 8 Contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession.

A Statement of Claim has been served naming the Company and its subsidiary, Wajax Industries Limited, as defendants in proceedings under the Class Proceedings Act of British Columbia.The action arises out of the conversion on January 1, 2001 of the Employee Pension Plan from defined benefit to defined contribution, the taking of contribution holidays and the payment of pension administration expenses from the pension fund.The Company had previously evaluated the claims it anticipated could be articulated and concluded such claims would be unlikely to succeed.Management has assessed the facts and arguments pleaded and continues to believe the claims would be unlikely to succeed.

Note 9 Acquisition

Effective October 7, 2004, the company's Mobile Equipment segment acquired all of the outstanding shares of XR Equipment Ltd, a JCB distribution business in London London, city, Canada
London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. Ontario Ontario, city, United States
Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , for a total purchase price, including assumed debt, of $1.2 million.The results of operations from the acquisition have been included in the consolidated statements of the Company as of the effective date.

The following is a summary of the purchase price allocation The apportionment or designation of an item for a specific purpose or to a particular place.

In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as :

----------------------------------------------------
----------------------------------------------------
Working capital                                 $793
Capital assets                                    27
Intangible assets                                351
Assumed debt                                   (326)
----------------------------------------------------
Total cash paid                                 $845
----------------------------------------------------
----------------------------------------------------

In the three month period ending Dec 31, 2003 the company purchased all the assets of P.M.D.F. Hydraulique Inc. an industrial distribution business, for a total purchase price of $1.0 million.

Note 10 Comparative information

Certain comparative numbers have been reclassified to conform with current presentation.

Wajax Limited (TSX:WJX)

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