Wajax Announces 2012 Third Quarter Earnings

                                                                   
(Dollars in millions,       Three Months Ended       Nine Months Ended
except per share            September 30                  September 30
data) 
                          2012   2011                2012   2011   
CONSOLIDATED RESULTS                                                   
Revenue                     $356.4 $361.9            $1,101.1 $999.9   
Net earnings                 $16.2  $17.9               $51.7  $47.2   
Basic earnings per           $0.97  $1.08               $3.10  $2.84  
share 


                                                                      

SEGMENTS                                                              

Revenue  - Equipment        $194.2 $177.9              $576.9 $493.6  
         - Power             $75.6  $98.0              $253.3 $251.9  
         Systems
         - Industrial        $87.5  $86.7              $274.7 $257.3  
         Components

Net      - Equipment         $13.3  $12.7               $42.1  $35.9  
Earnings
           %  margin          6.9%   7.1%                7.3%   7.3%  
         - Power              $6.0   $9.7               $21.1  $25.0  
         Systems
           %  margin          7.9%   9.9%                8.3%   9.9%  
         - Industrial         $5.5   $6.2               $18.5  $17.2  
         Components
           % margin           6.3%   7.2%                6.7%   6.7%  
                                                                      

TSX Symbol: WJX

TORONTO, Nov. 6, 2012 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") 
today announced its 2012 third quarter results.

Third Quarter Highlights
    --  Consolidated third quarter revenue of $356.4 million decreased
        $5.5 million, or 2%, compared to last year as a result of a
        $22.4 million reduction in sales in the Power Systems segment
        largely due to reduced activity in the western Canada oil and
        gas sector.  Equipment sales rose 9% on higher revenue in all
        key product sectors, with particular strength noted in the
        construction sector.  Industrial Components revenue increased
        1%.
    --  Net earnings for the quarter were $16.2 million, or $0.97 per
        share, compared to $17.9 million, or $1.08 per share recorded
        in 2011.  Equipment segment net earnings increased 5% on the
        higher volumes. Power Systems segment net earnings declined
        $3.7 million on the lower revenue and Industrial Components
        segment net earnings declined by $0.7 million as an increase in
        selling and administrative costs more than outweighed the
        positive effect of the slightly higher sales.
    --  Consolidated backlog of $202.4 million at September 30, 2012
        decreased 17% compared to June 30, 2012, mainly as a result of
        lower customer orders in the mining and oil and gas sectors in
        the Equipment and Industrial Components segments.  Power
        Systems backlog increased 8% for the same period.
    --  The Corporation announced that, effective November 2, 2012,
        Wajax Equipment became the exclusive Canadian distributor of
        Bell articulated dump trucks. These trucks, manufactured by
        Bell Equipment Limited, are one of the world's leading truck
        lines for construction, quarry and medium duty resource
        applications and are sold in 80 countries.  Wajax estimates the
        annual size of the Canadian market to be at least 500 units, or
        $225 million. Wajax also estimates the existing Canadian
        installed base of trucks manufactured by Bell to be
        approximately 300 units, which is expected to yield an
        immediate parts and service opportunity.  The geographic scope
        and capability of Wajax Equipment's Canada-wide distribution
        network were central factors in securing distribution rights to
        this world-class product line.

Effective September 4, 2012, Katie Hunter was appointed Senior Vice President, 
Human Resources of Wajax Corporation. Ms. Hunter has held the position of Vice 
President, Human Resources at various companies in the manufacturing, mining 
and health care sectors and brings extensive experience in human resource 
management.

The Corporation declared monthly dividends of $0.27 per share ($3.24 
annualized) for the months of November and December, 2012 and January and 
February, 2013.

Commenting on the third quarter results and the outlook for the remainder of 
2012, Mark Foote, President and CEO, stated:

"Overall results for the quarter met our expectations. We were very pleased 
with the performance of the Equipment division which continued to grow 
earnings year-over-year in spite of the loss of the LeTourneau product support 
business. We enjoyed higher equipment sales on stronger construction and 
material handling markets. Softer economic conditions, particularly related to 
the western Canadian oil and gas sector, negatively impacted profitability in 
Power Systems and Industrial Components. Overall backlog declined primarily 
as a result of a reduction in customer orders in the mining and oil and gas 
sectors and the delivery of the last two LeTourneau mining loaders. While 
the number of outstanding quotes for mining equipment continues to be 
significant, customers have been delaying their purchasing decisions in the 
face of lower commodity prices.

Looking forward we expect softness in the oil and gas and mining sectors to 
continue into 2013. This, combined with initial signs of some slowing in other 
areas of the Canadian economy leads us to a more cautious view of near term 
results. However, we continue to expect that full year earnings will be 
modestly higher compared to 2011.

We believe the addition of the Bell truck line will play an important role in 
the continued growth of our Equipment division. We remain confident in our 
strategy and will continue to invest in our mining equipment inventory program 
and our other strategic initiatives to ensure we are well positioned to 
capitalize on market opportunities as customer purchasing decisions 
accelerate."

Wajax is a leading Canadian distributor and service support provider of mobile 
equipment, power systems and industrial components. Reflecting a diversified 
exposure to the Canadian economy, its three distinct core businesses operate 
through a network of 118 branches across Canada. Its customer base spans 
natural resources, construction, transportation, manufacturing, industrial 
processing and utilities.

Wajax will Webcast its Third Quarter Financial Results Conference Call. You 
are invited to listen to the live Webcast on Tuesday, November 6, 2012 at 2:00 
p.m. ET. To access the Webcast, enter www.wajax.com and click on the link 
for the Webcast on the Investor Relations page.

Cautionary Statement Regarding Forward Looking Information

This news release contains certain forward-looking statements and 
forward-looking information, as defined in applicable securities laws 
(collectively, "forward-looking statements"). These forward-looking 
statements relate to future events or the Corporation's future performance. 
All statements other than statements of historical fact are forward-looking 
statements. Often, but not always, forward looking statements can be 
identified by the use of words such as "plans", "anticipates", "intends", 
"predicts", "expects", "is expected", "scheduled", "believes", "estimates", 
"projects" or "forecasts", or variations of, or the negatives of, such words 
and phrases or state that certain actions, events or results "may", "could", 
"would", "should", "might" or "will" be taken, occur or be achieved. Forward 
looking statements involve known and unknown risks, uncertainties and other 
factors beyond the Corporation's ability to predict or control which may cause 
actual results, performance and achievements to differ materially from those 
anticipated or implied in such forward looking statements. There can be no 
assurance that any forward looking statement will materialize. Accordingly, 
readers should not place undue reliance on forward looking statements. The 
forward looking statements in this news release are made as of the date of 
this news release, reflect management's current beliefs and are based on 
information currently available to management. Although management believes 
that the expectations represented in such forward-looking statements are 
reasonable, there is no assurance that such expectations will prove to be 
correct. Specifically, this news release includes forward looking statements 
regarding, among other things, our outlook for the Canadian economy for the 
remainder of 2012 and into 2013, the impact of commodity prices on our end 
markets, our outlook with respect to results for the financial year, the 
addition of the Bell articulated dump truck line and our investment in our 
strategic initiatives. These statements are based on a number of assumptions 
which may prove to be incorrect, including, but not limited to, assumptions 
regarding general business and economic conditions, the supply and demand for, 
and the level and volatility of prices for, commodities, financial market 
conditions, including interest rates, the future financial performance of the 
Corporation, our costs, market competition, our ability to attract and retain 
skilled staff, our ability to procure quality products and inventory and our 
ongoing relations with suppliers, employees and customers. The foregoing 
list of assumptions is not exhaustive. Factors that may cause actual results 
to vary materially include, but are not limited to, a deterioration in general 
business and economic conditions, volatility in the supply and demand for, and 
the level of prices for, commodities, fluctuations in financial market 
conditions, including interest rates, the level of demand for, and prices of, 
the products and services we offer, market acceptance of the products we 
offer, termination of distribution or original equipment manufacturer 
agreements, unanticipated operational difficulties (including failure of 
plant, equipment or processes to operate in accordance with specifications or 
expectations, cost escalation, unavailability of quality products or 
inventory, supply disruptions, job action and unanticipated events related to 
health, safety and environmental matters), our ability to attract and retain 
skilled staff and our ability to maintain our relationships with suppliers, 
employees and customers. The foregoing list of factors is not exhaustive. 
The forward-looking statements contained in this news release are expressly 
qualified in their entirety by this cautionary statement. The Corporation 
does not undertake any obligation to publicly update such forward-looking 
statements to reflect new information, subsequent events or otherwise unless 
so required by applicable securities laws. Further information concerning 
the risks and uncertainties associated with these forward looking statements 
and the Corporation's business may be found in our Annual Information Form for 
the year ended December 31, 2011, filed on SEDAR.

Management's Discussion and Analysis - Q3 2012

The following management's discussion and analysis ("MD&A") discusses the 
consolidated financial condition and results of operations of Wajax 
Corporation ("Wajax" or the "Corporation") for the quarter ended September 30, 
2012. This MD&A should be read in conjunction with the information contained 
in the unaudited Condensed Consolidated Financial Statements and accompanying 
notes for the quarter ended September 30, 2012, the annual audited 
Consolidated Financial Statements and accompanying notes for the year ended 
December 31, 2011 and the associated MD&A. Information contained in this 
MD&A is based on information available to management as of November 6, 2012.

Unless otherwise indicated, all financial information within this MD&A is in 
millions of dollars, except share and per share data.

Additional information, including Wajax's Annual Report and Annual Information 
Form, are available on SEDAR at www.sedar.com.

Responsibility of Management and the Board of Directors

Management is responsible for the information disclosed in this MD&A and the 
unaudited Condensed Consolidated Financial Statements and accompanying notes, 
and has in place appropriate information systems, procedures and controls to 
ensure that information used internally by management and disclosed externally 
is materially complete and reliable. Wajax's Board of Directors has approved 
this MD&A and the unaudited Condensed Consolidated Financial Statements and 
accompanying notes. In addition, Wajax's Audit Committee, on behalf of the 
Board of Directors, provides an oversight role with respect to all public 
financial disclosures made by Wajax, and has reviewed this MD&A and the 
unaudited Condensed Consolidated Financial Statements and accompanying notes.

Disclosure Controls and Procedures and Internal Control over Financial 
Reporting

As at September 30, 2012, Wajax's management, under the supervision of its CEO 
and CFO, had designed disclosure controls and procedures ("DC&P") to provide 
reasonable assurance that information required to be disclosed by Wajax in 
annual filings, interim filings or other reports filed or submitted under 
securities legislation is recorded, processed, summarized and reported within 
the time periods specified in the securities legislation. DC&P are designed 
to ensure that information required to be disclosed by Wajax in annual 
filings, interim filings or other reports filed or submitted under securities 
legislation is accumulated and communicated to Wajax's management, including 
its CEO and CFO, as appropriate, to allow timely decisions regarding required 
disclosure.

As at September 30, 2012, Wajax's management, under the supervision of its CEO 
and CFO, had designed internal control over financial reporting ("ICFR") to 
provide reasonable assurance regarding the reliability of financial reporting 
and the preparation of financial statements for external purposes in 
accordance with International Financial Reporting Standards ("IFRS"). In 
completing the design, management used the criteria set forth by the Committee 
of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal 
Control - Integrated Framework. With regard to general controls over 
information technology, management also used the set of practices of Control 
Objectives for Information and related Technology ("COBIT") created by the IT 
Governance Institute.

There was no change in Wajax's ICFR that occurred during the three months 
ended September 30, 2012 that has materially affected, or is reasonably likely 
to materially affect, Wajax's ICFR.

Wajax Corporation Overview

Wajax's core distribution businesses are engaged in the sale and after-sale 
parts and service support of mobile equipment, power systems and industrial 
components through a network of 118 branches across Canada. Wajax is a 
multi-line distributor and represents a number of leading worldwide 
manufacturers in its core businesses. Its customer base is diversified, 
spanning natural resources, construction, transportation, manufacturing, 
industrial processing and utilities.

Wajax's strategy is to continue to grow earnings in all segments through 
continuous improvement of operating margins and revenue growth while 
maintaining a strong balance sheet. Revenue growth will be achieved through 
market share gains, the addition of new or complementary product lines and 
aftermarket support services and expansion into new Canadian geographic 
territories, either organically or through acquisitions.

In 2012, the Corporation established an objective of declaring annual 
dividends equal to at least 75% of earnings subject to the Corporation's 
financial condition, economic outlook and capital requirements for growth 
including acquisitions. The Corporation's intention is to continue paying 
dividends on a monthly basis.

Cautionary Statement Regarding Forward-Looking Information

This MD&A contains certain forward-looking statements and forward-looking 
information, as defined in applicable securities laws (collectively, 
"forward-looking statements"). These forward-looking statements relate to 
future events or the Corporation's future performance. All statements other 
than statements of historical fact are forward-looking statements. Often, 
but not always, forward looking statements can be identified by the use of 
words such as "plans", "anticipates", "intends", "predicts", "expects", "is 
expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or 
variations of, or the negatives of, such words and phrases or state that 
certain actions, events or results "may", "could", "would", "should", "might" 
or "will" be taken, occur or be achieved. Forward looking statements involve 
known and unknown risks, uncertainties and other factors beyond the 
Corporation's ability to predict or control which may cause actual results, 
performance and achievements to differ materially from those anticipated or 
implied in such forward looking statements. There can be no assurance that 
any forward looking statement will materialize. Accordingly, readers should 
not place undue reliance on forward looking statements. The forward looking 
statements in this MD&A are made as of the date of this MD&A, reflect 
management's current beliefs and are based on information currently available 
to management. Although management believes that the expectations 
represented in such forward-looking statements are reasonable, there is no 
assurance that such expectations will prove to be correct. Specifically, 
this MD&A includes forward looking statements regarding, among other things, 
our outlook for the Canadian economy for the remainder of 2012 and 2013, the 
impact of commodity prices on our end markets, our outlook with respect to 
results for the financial year, the addition of the Bell articulated dump 
truck line, our plans and expectations for revenue and earnings growth, 
planned marketing, strategic, operational and growth initiatives and their 
expected outcomes, our current and future plans regarding the expansion of our 
business, the addition of new product offerings and aftermarket support 
services and expansion into new Canadian geographic territories, our financing 
and capital requirements and our objectives with respect to the future payment 
of dividends. These statements are based on a number of assumptions which 
may prove to be incorrect, including, but not limited to, assumptions 
regarding general business and economic conditions, the supply and demand for, 
and the level and volatility of prices for, commodities, financial market 
conditions, including interest rates, the future financial performance of the 
Corporation, our costs, market competition, our ability to attract and retain 
skilled staff, our ability to procure quality products and inventory and our 
ongoing relations with suppliers, employees and customers. The foregoing 
list of assumptions is not exhaustive. Factors that may cause actual results 
to vary materially include, but are not limited to, a deterioration in general 
business and economic conditions, volatility in the supply and demand for, and 
the level of prices for, commodities, fluctuations in financial market 
conditions, including interest rates, the level of demand for, and prices of, 
the products and services we offer, market acceptance of the products we 
offer, termination of distribution or original equipment manufacturer 
agreements, unanticipated operational difficulties (including failure of 
plant, equipment or processes to operate in accordance with specifications or 
expectations, cost escalation, unavailability of quality products or 
inventory, supply disruptions, job action and unanticipated events related to 
health, safety and environmental matters), our ability to attract and retain 
skilled staff and our ability to maintain our relationships with suppliers, 
employees and customers. The foregoing list of factors is not exhaustive. 
Further information concerning the risks and uncertainties associated with 
these forward looking statements and the Corporation's business may be found 
in this MD&A under the heading "Risk Management and Uncertainties" and in our 
Annual Information Form for the year ended December 31, 2011, filed on 
SEDAR. The forward-looking statements contained in this MD&A are expressly 
qualified in their entirety by this cautionary statement. The Corporation 
does not undertake any obligation to publicly update such forward-looking 
statements to reflect new information, subsequent events or otherwise unless 
so required by applicable securities laws. Readers are further cautioned 
that the preparation of financial statements in accordance with IFRS requires 
management to make certain judgments and estimates that affect the reported 
amounts of assets, liabilities, revenues and expenses. These estimates may 
change, having either a negative or positive effect on net earnings as further 
information becomes available, and as the economic environment changes.

Consolidated Results
                                                                     
                         Three months ended        Nine months ended
                            September 30             September 30
                           2012        2011           2012       2011

Revenue                  $356.4      $361.9       $1,101.1     $999.9

Gross profit              $71.1       $74.7         $228.2     $213.1

Selling and
administrative            $48.1       $48.7         $154.7     $144.6
expenses

Earnings before           $23.0       $26.0          $73.5      $68.5
finance costs and
income taxes

Finance costs              $1.2        $1.4           $3.1       $3.5

Earnings before           $21.8       $24.6          $70.4      $65.0
income taxes

Income tax expense         $5.7        $6.7          $18.7      $17.8

Net earnings              $16.2       $17.9          $51.7      $47.2

Earnings per share                                            

  - Basic                 $0.97       $1.08          $3.10      $2.84

  - Diluted               $0.95       $1.06          $3.05      $2.79
                                                                

Revenue
Revenue in the third quarter of 2012 decreased 2%, or $5.5 million, to $356.4 
million, from $361.9 million in the third quarter of 2011. Segment revenue 
increased 9% in Equipment, decreased 23% in Power Systems and increased 1% in 
Industrial Components compared to the same quarter last year.

For the nine months ended September 30, 2012, revenue increased 10%, or $101.2 
million, over the same period last year. Excluding revenue from the former 
operations of Harper Power Products Inc. ("Harper") acquired on May 2, 2011, 
revenue increased 9%, or $84.3 million.

Gross profit
Gross profit in the third quarter of 2012 decreased $3.6 million due to the 
decrease in volumes and a lower gross profit margin percentage compared to the 
third quarter last year. The gross profit margin percentage for the quarter 
of 19.9% declined from 20.6% in the third quarter of 2011 due mainly to lower 
equipment margins compared to last year.

For the nine months ended September 30, 2012, gross profit increased $15.1 
million due mainly to higher volumes compared to the same period last year. 
The gross profit margin percentage decreased to 20.7% in 2012 from 21.3% in 
2011 due mainly to a negative sales mix variance resulting from a higher 
proportion of equipment sales and lower equipment margins in Power Systems 
compared to the same period last year.

Selling and administrative expenses
Selling and administrative expenses decreased $0.6 million in the third 
quarter of 2012 compared to the same quarter last year. Decreases resulting 
from lower annual incentive accruals were offset in part by higher personnel 
and sales related costs. Selling and administrative expenses as a percentage 
of revenue remained the same at 13.5% in the third quarter of 2012 compared to 
the same quarter of 2011.

For the nine months ended September 30, 2012, selling and administrative 
expenses increased $10.1 million compared to the same period last year due 
primarily to increased personnel and sales related costs, $3.7 million related 
to the former Harper operation and a $0.7 million increase in share-based 
mid-term incentive accruals. These increases were partially offset by lower 
annual incentive accruals and reduced bad debt expense. Selling and 
administrative expenses as a percentage of revenue decreased to 14.0% in 2012 
from 14.5% in 2011.

Finance costs
Quarterly finance costs of $1.2 million decreased $0.2 million compared to the 
same quarter last year. For the nine months ended September 30, 2012, finance 
costs of $3.1 million decreased $0.4 million compared to the same period in 
2011.

The cost of higher funded debt levels outstanding during the quarter and for 
the nine months ending September 30, 2012 were more than offset by the 
Corporation's lower cost of borrowing compared to the same periods last 
year. Funded net debt includes bank debt, bank indebtedness and obligations 
under finance leases, net of cash.

Income tax expense
The effective income tax rate of 26.0% for the quarter decreased from 27.2% 
the previous year due primarily to the impact of reduced statutory income tax 
rates.

For the nine months ended September 30, 2012, the effective income tax rate of 
26.5% decreased from 27.3% in the previous year as a result of the impact of 
reduced statutory income tax rates and lower expenses not deductible for tax 
purposes.

Net earnings
Quarterly net earnings decreased $1.7 million to $16.2 million, or $0.97 per 
share, from $17.9 million, or $1.08 per share, in the same quarter of 2011. 
The negative impact of reduced volumes and a lower gross profit margin 
percentage more than offset decreased selling and administrative expenses and 
lower finance costs compared to the same quarter last year.

For the nine months ended September 30, 2012, net earnings increased $4.5 
million to $51.7 million, or $3.10 per share, from $47.2 million, or $2.84 per 
share, in the same period in 2011. The positive impact of higher volumes and 
lower finance costs more than compensated for the lower gross profit margin 
percentage and increased selling and administrative expenses compared to the 
same period last year.

Comprehensive income
Total comprehensive income of $16.0 million in the third quarter of 2012 
included net earnings of $16.2 million less an other comprehensive loss of 
$0.2 million. The other comprehensive loss of $0.2 million resulted 
primarily from losses on derivative instruments designated as cash flow hedges 
outstanding at the end of the quarter.

For the nine months ended September 30, 2012, total comprehensive income of 
$51.7 million included net earnings of $51.7 million and a nominal other 
comprehensive loss.

Funded net debt
Funded net debt of $139.3 million at September 30, 2012 increased $20.0 
million compared to June 30, 2012. Increases in operating assets and 
liabilities ("operating working capital") of $23.2 million resulted in 
negative cash flows from operating activities for the quarter of $4.2 
million. Other uses of cash included dividends paid of $13.6 million, 
investing activities of $1.5 million and finance lease payments of $0.3 
million. Wajax's quarter-end funded net debt-to-equity ratio of 0.58:1 at 
September 30, 2012 increased from the June 30, 2012 ratio of 0.50:1.

Funded net debt of $139.3 million at September 30, 2012 increased $75.6 
million compared to December 31, 2011. Increases in operating working 
capital of $89.0 million resulted in negative cash flows from operating 
activities for the nine months ending September 30, 2012 of $30.3 million. 
Other uses of cash included dividends paid of $37.0 million, investing 
activities of $5.4 million and finance lease payments of $1.7 million. 
Wajax's period-end funded net debt-to-equity ratio of 0.58:1 at September 30, 
2012 increased from the December 31, 2011 ratio of 0.28:1.

See the Cash Flow, Liquidity and Capital Resources section for further detail.

Dividends
For the third quarter ended September 30, 2012 monthly dividends declared 
totaled $0.81 per share and included $0.27 per share for each of the months of 
July, August and September. For the third quarter ended September 30, 2011 
monthly dividends declared were $0.58 per share.

For the nine months ended September 30, 2012 monthly dividends declared 
totaled $2.29 per share. For the nine months ended September 30, 2011 
monthly dividends declared were $1.54 per share.

On August 10, 2012 Wajax announced monthly dividends of $0.27 per share ($3.24 
annualized) for the month of October payable on November 20, 2012 to 
shareholders of record on October 31, 2012.

On November 6, 2012 Wajax announced monthly dividends of $0.27 per share 
($3.24 annualized) for each of the months of November, December, January and 
February payable on December 20, 2012, January 21, 2013, February 20, 2013 and 
March 20, 2013 to shareholders of record on November 30, 2012, December 31, 
2012, January 31, 2013 and February 28, 2013, respectively.

Backlog
Consolidated backlog at September 30, 2012 of $202.4 million decreased $41.6 
million or 17% compared to June 30, 2012 due to reductions in the Equipment 
and Industrial Components segments, partially offset by increases in the Power 
Systems segment. Consolidated backlog decreased $61.4 million compared to 
September 30, 2011 on reductions in all segments. Backlog includes the total 
retail value of customer purchase orders for future delivery or 
commissioning. See the Results of Operations section for further backlog 
detail by segment.

Senior Vice President, Human Resources
Effective September 4, 2012, Katie Hunter was appointed Senior Vice President, 
Human Resources of Wajax Corporation. Ms. Hunter has held the position of 
Vice President, Human Resources at various companies in the manufacturing, 
mining and health care sectors and brings extensive experience in human 
resource management.

Results of Operations

Equipment
                                                                      
                            Three months ended       Nine months ended
                               September 30            September 30
                              2012        2011         2012       2011

Equipment*                  $132.5      $116.5       $383.2     $302.5

Parts and service            $61.7       $61.4       $193.7     $191.1

Segment revenue             $194.2      $177.9       $576.9     $493.6

Segment earnings             $13.3       $12.7        $42.1      $35.9

Segment earnings              6.9%        7.1%         7.3%       7.3%
margin

*     Includes                                             
rental revenue.
                                                      

Revenue in the third quarter of 2012 increased $16.3 million, or 9%, to $194.2 
million from $177.9 million in the third quarter of 2011. Segment earnings 
for the quarter increased $0.6 million to $13.3 million compared to the third 
quarter of 2011. The following factors contributed to the Equipment 
segment's third quarter results:
    --  Equipment revenue for the third quarter increased $16.0 million
        compared to the same quarter last year.  Specific


    quarter-over-quarter variances included the following:
  o Construction equipment revenue increased $10.2 million mainly as a 


    result of market demand which drove increases in sales of Hitachi
    excavators, primarily in western Canada. Higher Wirtgen road
    building equipment sales in Ontario and increased JCB construction


equipment volumes also contributed to the increase.
  o Material handling equipment revenue increased $3.4 million on 
higher volumes in all regions.
  o Crane and utility equipment revenue increased $1.1 million 


    attributable to higher new equipment sales to utility customers in
    Ontario and eastern Canada, offset partially by lower crane sales


in western Canada.
  o Mining equipment sales increased $1.1 million.  The delivery of two 
LeTourneau loaders in eastern Canada was somewhat offset by fewer 
Hitachi mining equipment deliveries in western Canada.
  o Forestry equipment revenues increased $0.2 million. 


    --  Parts and service volumes for the third quarter increased $0.3
        million compared to the same quarter last year. Excluding the
        LeTourneau product line, which was discontinued in the second
        quarter of this year, parts and service volumes for the third
        quarter increased $4.9 million, or 9%.  Higher mining,
        construction and forestry sector sales, primarily in western
        Canada, were offset by lower materials handling and crane &
        utilities sector volumes in all regions.
    --  Segment earnings for the third quarter increased $0.6 million
        to $13.3 million compared to the same quarter last year.  The
        positive impact of higher volumes outweighed the negative
        impact of a lower gross profit margin resulting from a higher
        proportion of equipment sales and a $0.6 million increase in
        selling and administrative expenses.  Selling and
        administrative expenses increased compared to the same quarter
        last year on higher personnel and sales related expenses.

Backlog of $95.4 million at September 30, 2012 decreased $38.5 million 
compared to June 30, 2012. Mining equipment backlog declined on a reduction of 
customer orders and the delivery of the last two LeTourneau loaders. In 
addition, construction and forestry sector related backlog is lower as 
manufacturers' inventory levels currently allow for timelier product 
shipments. Backlog decreased $50.5 million compared to September 30, 2011 
due mainly to reduced mining equipment backlog.

Effective November 2, 2012, the Equipment segment became the exclusive 
Canadian distributor of Bell articulated dump trucks. These trucks, 
manufactured by Bell Equipment Limited, are one of the world's leading truck 
lines for construction, quarry and medium duty resource applications and are 
sold in 80 countries. Wajax estimates the annual size of the Canadian market 
to be at least 500 units, or $225 million. Wajax also estimates the existing 
Canadian installed base of trucks manufactured by Bell to be approximately 300 
units, which is expected to yield an immediate parts and service 
opportunity. The geographic scope and capability of Equipment's Canada-wide 
distribution network were central factors in securing distribution rights to 
this world-class product line.

On October 17, 2011, Wajax announced it had reached an agreement with 
LeTourneau Technologies, Inc. ("LeTourneau") providing for the dealer 
agreement relating to Wajax's distribution of LeTourneau mining equipment and 
parts products in Canada to be discontinued effective April 27, 2012. Wajax 
Equipment delivered all the remaining equipment orders in backlog during the 
quarter. LeTourneau revenue for the nine months ended September 30, 2012 
included equipment sales of $25.6 million and parts and service volumes of 
$13.0 million and contributed approximately $8 million to the Equipment 
segments earnings.

Power Systems
                                                                      
                            Three months ended       Nine months ended
                               September 30            September 30
                             2012         2011         2012       2011

Equipment*                  $28.6        $45.3        $97.5     $116.9

Parts and service           $47.0        $52.7       $155.8     $135.0

Segment revenue             $75.6        $98.0       $253.3     $251.9

Segment earnings             $6.0         $9.7        $21.1      $25.0

Segment earnings             7.9%         9.9%         8.3%       9.9%
margin

*     Includes                                                        
rental and other
revenue.
                                                                 

Revenue in the third quarter of 2012 decreased $22.4 million, or 23%, to $75.6 
million compared to $98.0 million in the same quarter of 2011. Segment 
earnings decreased $3.7 million to $6.0 million in the third quarter compared 
to the same quarter in the previous year. The following factors impacted 
quarterly revenue and earnings compared to last year:
    --  Equipment revenue decreased $16.7 million.  The majority of the
        decrease was due to lower equipment volumes to off-highway oil
        and gas customers as a result of reduced industry activity in
        western Canada.  In addition, lower volumes from an OEM
        customer in Ontario more than offset increased power generation
        equipment sales.
    --  Parts and service volumes decreased $5.7 million compared to
        last year mainly as a result of lower sales to off-highway
        customers resulting from reduced activity in western Canada's
        oil and gas sector.   Increased power generation parts and
        service volumes essentially offset reduced sales to on-highway
        customers.
    --  Segment earnings in the third quarter of 2012 decreased $3.7
        million compared to the same quarter last year as the impact of
        lower volumes and reduced equipment margins was mitigated
        somewhat by a $1.1 million decrease in selling and
        administrative expenses. Selling and administrative expenses
        decreased due mainly to lower annual incentive accruals.

Backlog of $65.5 million as of September 30, 2012 increased $4.6 million 
compared to June 30, 2012 as a large power generation order received in the 
Ontario region during the quarter offset the impact of a decline in oil and 
gas sector related backlog. Backlog decreased $5.0 million compared to 
September 30, 2011 due to lower oil and gas sector related backlog.

Industrial Components
                                                                
                           Three months ended       Nine months ended
                              September 30            September 30
                            2012         2011         2012       2011

Segment revenue            $87.5        $86.7       $274.7     $257.3

Segment earnings            $5.5         $6.2        $18.5      $17.2

Segment earnings            6.3%         7.2%         6.7%       6.7%
margin
                                                                

Revenue of $87.5 million in the third quarter of 2012 increased $0.8 million 
from $86.7 million in the third quarter of 2011. Segment earnings decreased 
$0.7 million to $5.5 million in the third quarter compared to the same quarter 
in the previous year. The following factors contributed to the segment's third 
quarter results:
    --  Bearings and power transmission parts sales increased $1.8
        million, or 4%, compared to the same quarter last year led by
        higher mining sector volumes in Ontario and western Canada,
        improved transportation sector sales in eastern Canada and
        increased oil and gas and construction sector sales in western
        Canada. These increases were offset by a decline in revenue
        from industrial sector customers in eastern Canada and Ontario.
    --  Fluid power and process equipment products and service revenue
        in the third quarter of 2012 decreased $1.0 million, or 2%.
        Lower mining sector sales in western Canada and Ontario and
        lower oil and gas sector volumes more than offset higher sales
        to agriculture and metal processing sector customers.
    --  Segment earnings in the third quarter of 2012 decreased $0.7
        million compared to the same quarter last year due mainly to a
        $0.8 million increase in selling and administration expenses. 
        The increase in selling and administrative expenses resulted
        primarily from higher personnel and sales related costs and
        computer system upgrade expenses.

Backlog of $41.5 million as of September 30, 2012 decreased $7.7 million 
compared to June 30, 2012. During the quarter, $3.7 million of orders were 
removed from backlog due primarily to the indefinite delay of an order for the 
supply of hydraulic systems and related parts into the oil and gas sector. 
Backlog decreased $5.7 million compared to September 30, 2011.

On October 22, 2012, Industrial Components acquired all of the issued and 
outstanding shares of ACE Hydraulic Limited, a hydraulic cylinder repair 
business located in Bathurst, New Brunswick with revenues of approximately 
$2.0 million. The consideration for the business was $1.7 million, subject to 
post-closing adjustments. The acquisition represents an important step towards 
the segment's strategy of expanding its engineering, service and repair 
capabilities across Canada.

Selected Quarterly Information

The following table summarizes unaudited quarterly consolidated financial data 
for the eight most recently completed quarters. This quarterly information 
is unaudited but has been prepared on the same basis as the 2011 annual 
audited Consolidated Financial Statements.
                                                                                                    
                                   2012                                     2011               2010
                    Q3         Q2         Q1         Q4         Q3         Q2         Q1         Q4

Revenue          $356.4     $386.6     $358.1     $377.2     $361.9     $334.1     $303.9     $316.4

Earnings          $21.8      $25.2      $23.3      $22.5      $24.6      $22.4      $18.0      $14.9
before
income
taxes
                                                                                               

Net               $16.2      $18.5      $17.1      $16.6      $17.9      $16.5      $12.8      $15.8
earnings
                                                                                               

Net                                                                                                 
earnings
per share

  -               $0.97      $1.11      $1.03      $1.00      $1.08      $0.99      $0.77      $0.95
  Basic   

  -               $0.95      $1.09      $1.01      $0.98      $1.06      $0.98      $0.76      $0.93
  Diluted
                                                                                               

Significant seasonal trends in quarterly revenue and earnings have not been 
evident over the last two years.

A discussion of Wajax's previous quarterly results can be found in Wajax's 
quarterly MD&A reports available on SEDAR at www.sedar.com.

Cash Flow, Liquidity and Capital Resources

Net Cash Flows Used In Operating Activities

Net cash flows used in operating activities amounted to $4.2 million in the 
third quarter of 2012, compared to $26.7 million generated in the same quarter 
of the previous year. The $30.9 million decrease was due mainly to an 
increased use of operating assets and liabilities ("operating working 
capital") of $24.3 million, higher rental equipment additions of $4.5 million 
and lower cash flows from operating activities before changes in operating 
working capital of $1.8 million.

For the nine months ended September 30, 2012, net cash flows used in operating 
activities amounted to $30.3 million, compared to $12.5 million generated for 
the same period in the previous year. The $42.8 million decrease was due 
primarily to an increased use of operating working capital of $42.1 million, 
higher rental equipment additions of $6.3 million and other liabilities of 
$2.6 million. This was partially offset by higher cash flows from operating 
activities before changes in operating working capital of $7.8 million.

Changes in operating working capital for the three and nine months of 2012 
compared to the same periods in 2011 include the following components:
                                                                
                           Three months ended       Nine months ended
                              September 30             September 30

Changes in operating          2012       2011         2012        2011
working capital *

Trade and other            ($11.4)       $3.6        $10.2       $42.0
receivables

Inventories                   $5.3      $12.5        $47.9       $24.6

Prepaid expenses            ($2.5)       $2.2       ($1.7)        $2.1

Accounts payable and         $31.6    ($18.6)        $31.4     ($21.1)
accrued liabilities

Provisions                    $0.1     ($0.7)         $1.1      ($0.7)

Total                        $23.2     ($1.1)        $89.0       $46.9

* Cash used in
(generated)


Significant components of the changes in operating working capital for the 
quarter ended September 30, 2012 are as follows: 


    --  Trade and other receivables decreased $11.4 million resulting
        from lower sales activity in the Power Systems segment's
        western Canada operation and in the Industrial Components
        segment.
    --  Inventories increased $5.3 million due mainly to higher mining
        equipment inventory in the Equipment segment.
    --  Accounts payable and accrued liabilities decreased $31.6
        million reflecting reductions in the Equipment segment's
        non-interest bearing inventory supplier financing and customer
        deposits related to mining equipment sales.  Lower inventory
        related trade payables, in the Industrial Components and Power
        Systems segments, also contributed to the decrease.

Significant components of the changes in operating working capital for the 
nine months ended September 30, 2012 are as follows:
    --  Trade and other receivables increased $10.2 million.  A
        significant increase in the Equipment segment related to mining
        equipment deliveries was partially offset by reductions in the
        Power Systems segment on lower sales activity.
    --  Inventories increased $47.9 million due mainly to a $26.8
        million increase in mining equipment in the Equipment segment. 
        Also contributing to the increase were higher levels of
        construction equipment in the Equipment segment, project
        related engines in Power Systems segment's eastern Canada
        operation and increased stock levels in the Industrial
        Components segment's western Canada operation.
    --  Accounts payable and accrued liabilities decreased $31.4
        million reflecting reductions in the Equipment segment.  This
        was attributable to decreased customer deposits related to
        mining equipment sales and lower non-interest bearing inventory
        supplier financing partially offset by increases in inventory
        trade payables.  Lower inventory related trade payables in the
        Power Systems segment and a reduction in annual incentive
        accruals also contributed to the decrease.

On the consolidated statement of financial position at September 30, 2012, 
Wajax had employed $214.2 million in current assets net of current 
liabilities, exclusive of funded net debt, compared to $165.0 million at 
December 31, 2011. The $49.2 million increase was due primarily to the $89.0 
million increase in operating working capital as detailed above, offset 
partially by an increase of $39.9 million in income taxes payable due in 
January 2013. The $39.9 million increase in income taxes payable includes 
approximately $23 million of tax on partnership income generated in 2011 and 
tax on income to be included in 2012 taxable income. See Liquidity and 
Capital Resources section for further detail.

Investing Activities

During the third quarter of 2012, Wajax invested $1.4 million in property, 
plant and equipment additions, net of disposals, compared to $0.8 million in 
the third quarter of 2011. Investing activities in the third quarter of 2011 
also included $1.7 million of cash paid on post-closing adjustments related to 
the acquisition of Harper.

For the nine months ended September 30, 2012, Wajax invested $5.2 million in 
property, plant and equipment additions, net of disposals, compared to $2.7 
million in the same period of 2011. The increase of $2.5 million includes 
$1.9 million of shop equipment related to the Power Systems segment's new 
leased facility in Drummondville, Quebec. Investing activities for the nine 
months ended September 30, 2011 also included $23.3 million of cash paid on 
the acquisition of Harper.

Financing Activities

The Corporation generated $15.1 million of cash from financing activities in 
the third quarter of 2012 compared to $18.3 million of cash used in financing 
activities in the same quarter of 2011. Financing activities in the quarter 
included bank debt borrowings of $29.0 million, offset partially by dividends 
paid to shareholders totaling $13.6 million, or $0.81 per share and finance 
lease payments of $0.3 million.

For the nine months ended September 30, 2012, the Corporation generated $24.0 
million of cash from financing activities compared to $31.3 million of cash 
used in financing activities in the same period of 2011. Financing activities 
for the nine months ended included bank debt borrowing of $63.0 million, 
offset partially by dividends paid to shareholders totaling $37.0 million, or 
$2.22 per share, finance lease payments of $1.7 million and debt facility 
amendment costs of $0.2 million.

Funded net debt of $139.3 million at September 30, 2012 increased $20.0 
million compared to June 30, 2012. Increases in operating working capital of 
$23.2 million resulted in negative cash flows from operating activities for 
the quarter of $4.2 million. Other uses of cash included dividends paid of 
$13.6 million, investing activities of $1.5 million and finance lease payments 
of $0.3 million. Wajax's quarter-end funded net debt-to-equity ratio of 
0.58:1 at September 30, 2012 increased from the June 30, 2012 ratio of 0.50:1.

Funded net debt of $139.3 million at September 30, 2012 increased $75.6 
million compared to December 31, 2011. Increases in operating working 
capital of $89.0 million resulted in negative cash flows from operating 
activities for the nine months ending September 30, 2012 of $30.3 million. 
Other uses of cash included dividends paid of $37.0 million, investing 
activities of $5.4 million and finance lease payments of $1.7 million. 
Wajax's period-end funded net debt-to-equity ratio of 0.58:1 at September 30, 
2012 increased from the December 31, 2011 ratio of 0.28:1.

Liquidity and Capital Resources

At September 30, 2012, Wajax had borrowed $123.0 million and issued $6.2 
million of letters of credit for a total utilization of $129.2 million of its 
$225 million bank credit facility and had no utilization of its $15 million 
equipment financing facility. Borrowing capacity under the bank credit 
facility is dependent on the level of inventories on-hand and outstanding 
trade accounts receivables. At September 30, 2012 borrowing capacity under 
the bank credit facility was equal to $225.0 million.

Since its conversion back to a corporation on January 1, 2011, Wajax has not 
made any significant income tax payments and will not be required to make any 
such payments until 2013. This is due to income tax payments being deferred 
as a result of its partnership structure. In January 2013, Wajax will be 
required to make an income tax payment of approximately $44 million. This 
includes approximately $23 million of tax on partnership income generated in 
2011 and the balance representing tax on income to be included in 2012 taxable 
income as a result of a change in tax legislation that has effectively removed 
the partnership income deferral benefit. The Corporation will also commence 
making monthly income tax installments in January 2013.

A key strategy of the Equipment segment is to grow its mining business through 
expansion into eastern Canada and the introduction of the new Hitachi mining 
truck. To ensure mining equipment is available to execute its strategy, 
Wajax has ordered certain mining equipment (large excavators and trucks) that 
do not currently have committed purchase orders. As such, since the 
beginning of the year Wajax has increased its investment in Hitachi mining 
equipment inventory by $26.8 million to $31.9 million as at September 30, 2012 
of which $16.4 million is available to fill future customer purchases. 
Depending on the level of economic activity in the Canadian mining sector, 
Wajax may continue to finance a portion of this and other mining equipment 
scheduled for delivery in late 2012 and 2013 for a period of time during 2013.

Wajax's $225 million bank credit facility along with the $15 million demand 
inventory equipment financing facility should be sufficient to meet Wajax's 
short-term normal course working capital and maintenance capital requirements, 
including the income tax payment in January 2013 and additional mining 
equipment inventory. However, Wajax may be required to access the equity or 
debt markets in order to fund acquisitions and growth related working capital 
and capital expenditures.

Financial Instruments

Wajax uses derivative financial instruments in the management of its foreign 
currency and interest rate exposures. Wajax's policy is not to utilize 
derivative financial instruments for trading or speculative purposes. 
Significant derivative financial instruments outstanding at the end of the 
quarter were as follows:
    --  As at September 30, 2012, Wajax had no interest rate swaps
        outstanding.  (As at September 30, 2011, Wajax was party to
        interest rate swaps that effectively fixed the interest rate on
        $80 million of debt until December 31, 2011).
    --  Wajax enters into short-term currency forward contracts to fix
        the exchange rate on the cost of certain inbound inventory and
        to hedge certain foreign currency-denominated sales to
        (receivables from) customers as part of its normal course of
        business.  As at September 30, 2012, Wajax had contracts
        outstanding to buy U.S.$25.8 million and to sell U.S.$4.1
        million (December 31, 2011 - to buy U.S.$36.0 million and
        €0.2 million and to sell U.S.$1.0 million, September 30,
        2011 - to buy U.S.$29.8 million).  The U.S. dollar contracts
        expire between October 2012 and April 2014, with a weighted
        average U.S./Canadian dollar rate of 1.0038.

Wajax measures derivative instruments not accounted for as hedging items, at 
fair value with subsequent changes in fair value being recorded in earnings. 
Derivatives designated as effective hedges are measured at fair value with 
subsequent changes in fair value being recorded in other comprehensive income 
until the related hedged item is recorded and affects income. The fair value 
of derivative instruments is estimated based upon market conditions using 
appropriate valuation models. The carrying values reported in the balance 
sheet for financial instruments are not significantly different from their 
fair values.

Wajax is exposed to the risk of non-performance by counterparties to 
short-term currency forward contracts. These counterparties are large 
financial institutions with a "Stable" outlook and high short-term and 
long-term credit ratings from Standard and Poor's. To date, no such 
counterparty has failed to meet its financial obligations to Wajax. 
Management does not believe there is a significant risk of non-performance by 
these counterparties and will continue to monitor the credit risk of these 
counterparties.

Currency Risk

There have been no material changes to currency risk since December 31, 2011.

Contractual Obligations

There have been no material changes to the Corporation's contractual 
obligations since December 31, 2011.

Off Balance Sheet Financing

Off balance sheet financing arrangements include operating lease contracts 
entered into for facilities with various landlords, a portion of the long-term 
lift truck rental fleet in Equipment with a non-bank lender, and office 
equipment with various non-bank lenders. There have been no material changes 
to the Corporation's total obligations for all operating leases since December 
31, 2011, see the Contractual Obligations section.

Although Wajax's consolidated contractual annual lease commitments decline 
year-by-year, it is anticipated that existing leases will either be renewed or 
replaced, resulting in lease commitments being sustained at current levels. 
In the alternative, Wajax may incur capital expenditures to acquire equivalent 
capacity.

The Equipment segment had $91.2 million (2011 - $26.1 million) of consigned 
inventory on-hand from a major manufacturer at September 30, 2012. In the 
normal course of business, Wajax receives inventory on consignment from this 
manufacturer which is generally sold to customers or purchased by Wajax. 
This consigned inventory is not included in Wajax's inventory as the 
manufacturer retains title to the goods.

In the event the inventory consignment program was terminated, Wajax would 
utilize interest free financing, if any, made available by the manufacturer 
and/or utilize capacity under its credit facilities. Although management 
currently believes Wajax has adequate debt capacity, Wajax would have to 
access the equity or debt markets, or temporarily reduce dividends to 
accommodate any shortfalls in Wajax's credit facilities. See the Liquidity 
and Capital Resources section.

Dividends

Dividends to shareholders were declared as follows:
                                                                

Record Date               Payment Date         Per Share        Amount

July 31, 2012           August 20, 2012            $0.27          $4.5

August 31, 2012       September 20, 2012            0.27           4.5

September 28,          October 22, 2012             0.27           4.5
2012

Three months                                       $0.81         $13.6
ended September
30, 2012
                                                                

On August 10, 2012 Wajax announced monthly dividends of $0.27 per share ($3.24 
annualized) for the month of October payable on November 20, 2012 to 
shareholders of record on October 31, 2012.

On November 6, 2012 Wajax announced monthly dividends of $0.27 per share 
($3.24 annualized) for each of the months of November, December, January and 
February payable on December 20, 2012, January 21, 2013, February 20, 2013 and 
March 20, 2013 to shareholders of record on November 30, 2013, December 31, 
2012, January 31, 2012 and February 28, 2013, respectively.

Productive Capacity and Productive Capacity Management

There have been no material changes to the Corporation's productive capacity 
and productive capacity management since December 31, 2011.

Financing Strategies

Wajax's $225 million bank credit facility along with the $15 million demand 
inventory equipment financing facility should be sufficient to meet Wajax's 
short-term normal course working capital and maintenance capital requirements, 
including the income tax payment in January 2013 and additional mining 
equipment inventory. However, Wajax may be required to access the equity or 
debt markets in order to fund acquisitions and growth related working capital 
and capital expenditures. See Liquidity and Capital Resources section for 
additional detail.

Wajax's short-term normal course requirements for current assets net of 
current liabilities, exclusive of funded net debt, ("working capital") can 
swing widely quarter-to-quarter due to the timing of large inventory purchases 
and/or sales and changes in market activity. In general, as Wajax 
experiences growth, there is a need for additional working capital as was the 
case in 2011 and currently in 2012. Conversely, as Wajax experiences 
economic slowdowns working capital reduces reflecting the lower activity 
levels as was the case in 2009. Fluctuations in working capital are 
generally funded by, or used to repay, the bank credit facility.

Borrowing capacity under the bank credit facility is dependent on the level of 
Wajax's inventories on-hand and outstanding trade accounts receivables. At 
September 30, 2012, total borrowing capacity under the bank credit facility 
was equal to $225 million of which $129.2 million was utilized at September 
30, 2012.

The bank credit facility contains covenants that could restrict the ability of 
Wajax to make dividend payments, if (i) the leverage ratio (Debt to EBITDA) is 
greater than 3.0 at the time of declaration of the dividend, and (ii) an event 
of default exists or would exist as a result of a dividend payment.

Share Capital

The shares of Wajax issued are included in shareholders' equity on the balance 
sheet as follows:
                                                                    

Issued and fully paid Shares as at               Number       Amount
September 30, 2012

Balance at the beginning of the              16,736,447       $106.7
quarter

Rights exercised                                      -            -

Balance at the end of the quarter            16,736,447       $106.7
                                                               

Wajax has five share-based compensation plans; the Wajax Share Ownership Plan 
("SOP"), the Deferred Share Program ("DSP"), the Directors' Deferred Share 
Unit Plan ("DDSUP"), the Mid-Term Incentive Plan for Senior Executives 
("MTIP") and the Deferred Share Unit Plan ("DSUP"). SOP, DSP and DDSUP 
rights are issued to the participants and are settled by issuing Wajax 
Corporation shares. The cash-settled MTIP and DSUP consist of annual grants 
that vest over three years and are subject to time and performance vesting 
criteria. A portion of the MTIP and the full amount of the DSUP grants are 
determined by the price of the Corporation's shares. Compensation expense 
for the SOP, DSP and DDSUP is determined based upon the fair value of the 
rights at the date of grant and charged to earnings on a straight line basis 
over the vesting period, with an offsetting adjustment to contributed 
surplus. Compensation expense for the DSUP and the share-based portion of 
the MTIP varies with the price of the Corporation's shares and is recognized 
over the vesting period. Wajax recorded compensation cost of $0.6 million 
for the quarter (2011 - $1.2 million) and $3.7 million for the nine months 
ended (2011 - $3.6 million) in respect of these plans.

Critical Accounting Estimates

The preparation of financial statements requires management to make 
judgements, estimates and assumptions that affect the application of 
accounting policies and the reported amounts of assets, liabilities and 
revenue and expenses during the reporting period. Actual results could 
differ from those estimates. The Corporation bases its estimates on 
historical experience and various other assumptions that are believed to be 
reasonable in the circumstances.

The areas where significant judgements and assumptions are used to determine 
the amounts recognized in the financial statements include the provision for 
doubtful accounts, inventory obsolescence, asset impairment, classification of 
leases, impairment of intangible assets, warranty provision and the 
measurement of employee defined benefit obligations. In preparing the 
financial statements for the quarter ended September 30, 2012, the significant 
judgments made by management in applying the Corporation's accounting policies 
and the key sources of estimation uncertainty are the same as those applied in 
the recently reported audited consolidated financial statements for the year 
ended December 31, 2011 which can be found on SEDAR at www.sedar.com.

Accounting Changes

Standards and interpretations not yet effective

In its MD&A for the year ended December 31, 2011 the Corporation described 
numerous new accounting standards which have been published but which have not 
yet been adopted by the Corporation. There have been no updates to these 
standards except as follows:

During the first quarter of 2012, the Corporation assessed the impact of 
adopting IFRS 9 Financial Instruments and does not believe that it will have a 
material impact on its consolidated financial statements because of the types 
of financial instruments that it holds.

As of January 1, 2013, the Corporation will be required to adopt amendments to 
IFRS 7 Financial Instruments: Disclosures, which contain new disclosure 
requirements for financial assets and financial liabilities that are offset in 
the statement of financial position. The Corporation is currently assessing 
the impact of the amendments to this standard on its consolidated financial 
statements.

As of January 1, 2014, the Corporation will be required to adopt amendments to 
IAS 32 Financial Instruments: Presentation, which clarifies the conditions for 
offsetting financial assets and financial liabilities. As the amendments 
only require changes in the presentation of items in the statement of 
financial position, the Corporation does not expect the amendments to IAS 32 
to have a material impact on the financial statements.

Risk Management and Uncertainties

As with most businesses, Wajax is subject to a number of marketplace and 
industry related risks and uncertainties which could have a material impact on 
operating results and Wajax's ability to pay cash dividends to shareholders. 
Wajax attempts to minimize many of these risks through diversification of core 
businesses and through the geographic diversity of its operations. In 
addition, Wajax has adopted an annual enterprise risk management assessment 
which is prepared by the Corporation's senior management and overseen by the 
Board of Directors and Committees of the Board. The enterprise risk management 
framework sets out principles and tools for identifying, evaluating, 
prioritizing and managing risk effectively and consistently across Wajax. 
There are however, a number of risks that deserve particular comment which are 
discussed in detail in the MD&A for the year ended December 31, 2011 which can 
be found on SEDAR at www.sedar.com. There have been no material changes to 
the business of Wajax that require an update to the discussion of the 
applicable risks discussed in the MD&A for the year ended December 31, 2011.

Outlook

Overall results for the quarter met management's expectations. The Equipment 
segment continued to grow earnings year-over-year in spite of the loss of the 
LeTourneau product support business. The Equipment segment enjoyed higher 
equipment sales on stronger construction and material handling markets. Softer 
economic conditions, particularly related to the western Canadian oil and gas 
sector, negatively impacted profitability in the Power Systems and Industrial 
Components segments. Overall backlog declined primarily as a result of a 
reduction in customer orders in the mining and oil and gas sectors and the 
delivery of the last two LeTourneau mining loaders. While the number of 
outstanding quotes for mining equipment continues to be significant, customers 
have been delaying their purchasing decisions in the face of lower commodity 
prices.

Looking forward Wajax expects softness in the oil and gas and mining sectors 
to continue into 2013. This, combined with initial signs of some slowing in 
other areas of the Canadian economy leads management to a more cautious view 
of near term results. However, management continues to expect that full year 
earnings will be modestly higher compared to 2011.

Wajax believes the addition of the Bell truck line will play an important role 
in the continued growth of its Equipment segment. Management remains 
confident in its strategy and will continue to invest in its mining equipment 
inventory program and other strategic initiatives to ensure Wajax is well 
positioned to capitalize on market opportunities as customer purchasing 
decisions accelerate.

Additional information, including Wajax's Annual Report and Annual Information 
Form, are available on SEDAR at www.sedar.com.

WAJAX CORPORATION

Unaudited Condensed Consolidated Financial Statements

For the three and nine months ended September 30, 2012

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

The attached condensed consolidated financial statements have been prepared by 
Management of Wajax Corporation and have not been reviewed by the 
Corporation's auditors.
                                    WAJAX CORPORATION
                          CONDENSED CONSOLIDATED STATEMENTS OF
                                   FINANCIAL POSITION
                               __________________________
                                                                       

As at                                        September         December
(unaudited, in thousands                      30, 2012         31, 2011
of Canadian dollars)              Note

ASSETS                                                                 

CURRENT                                                                

Cash                                       $         -     $      5,659

Trade and other                                184,472          174,233
receivables

Inventories                                    290,659          241,524

Prepaid expenses                                 6,354            8,033
                                               481,485          429,449
                                                                       

NON-CURRENT                                                            

Rental equipment                     3          42,828           28,060

Property, plant and                  4          49,439           47,924
equipment

Intangible assets                               83,608           84,493

Deferred taxes                       9           4,058                -
                                               179,933          160,477
                                           $   661,418     $    589,926
                                                                       

LIABILITIES AND                                                        
SHAREHOLDERS' EQUITY

CURRENT                                                                

Bank indebtedness                          $     6,013     $          -

Accounts payable and                           215,244          247,158
accrued liabilities

Provisions                                       4,602            5,704

Dividends payable                                4,519            3,326

Income taxes payable                            42,332            2,398

Obligations under finance                        3,577            3,646
leases

Derivative instruments                             586              208
                                               276,873          262,440
                                                                       

NON-CURRENT                                                            

Provisions                                       4,578            4,010

Deferred taxes                       9               -           17,694

Employee benefits                                6,858            6,843

Other liabilities                                1,854            5,644

Obligations under finance                        7,716            6,688
leases

Bank debt                            5         121,971           59,021
                                               142,977           99,900
                                                                       

SHAREHOLDERS' EQUITY                                                   

Share capital                        6         106,651          105,371

Contributed surplus                              4,127            4,888

Retained earnings                              130,990          117,477

Accumulated other                                (200)            (150)
comprehensive loss

Total shareholders'                            241,568          227,586
equity
                                           $   661,418     $    589,926

These condensed consolidated financial statements were approved by the Board 
of Directors on November 6, 2012.
                                                                                     
                                                  WAJAX CORPORATION
                                        CONDENSED CONSOLIDATED STATEMENTS OF
                                                      EARNINGS
                                              ________________________
                                                                                           

(unaudited, in
thousands of                          Three months ended               Nine months ended
Canadian                                 September 30                    September 30
dollars,

except per           Note              2012            2011            2012            2011
share data) 
                                                                                     

Revenue                         $   356,396     $   361,920     $ 1,101,085     $   999,918

Cost of sales                       285,304         287,212         872,880         786,817

Gross profit                         71,092          74,708         228,205         213,101

Selling and                          48,087          48,736         154,662         144,623
administrative
expenses

Earnings                             23,005          25,972          73,543          68,478
before finance
costs and
income taxes

Finance costs                         1,161           1,392           3,105           3,477

Earnings                             21,844          24,580          70,438          65,001
before income
taxes

Income tax              9             5,669           6,692          18,693          17,759
expense

Net earnings                    $    16,175     $    17,888     $    51,745     $    47,242
                                                                                           

Basic earnings         10       $      0.97     $      1.08     $      3.10     $      2.84
per share

Diluted                10       $      0.95     $      1.06     $      3.05     $      2.79
earnings per
share
                                                                                           
                                      WAJAX CORPORATION
                            CONDENSED CONSOLIDATED STATEMENTS OF
                                    COMPREHENSIVE INCOME
                                                                           
                         Three months ended             Nine months ended
                            September 30                  September 30

(unaudited,
in thousands              2012           2011           2012           2011
of Canadian
dollars)
                                                                           

Net earnings        $   16,175     $   17,888     $   51,745     $   47,242
                                                                           

Losses on
derivative
instruments
designated
as cash flow
hedges in
prior periods
reclassified
to
cost of
inventory or
finance costs
during the
period,
net of tax of
$12 (2011 -
$70) and year
to date,
net of tax of
$121 (2011 -
$460)                       34            185            331          1,214
                                                                           

(Losses)
gains on
derivative
instruments
outstanding
at the end of
the period
designated as
cash flow
hedges,
net of tax of
$79 (2011 -
$593) and
year to date,
net of
tax of $134
(2011 - $506)            (223)          1,654          (381)          1,416
                                                                           

Other                    (189)          1,839           (50)          2,630
comprehensive
(loss)
income, net
of tax
                                                                           

Total               $   15,986     $   19,727     $   51,695     $   49,872
comprehensive
income
                                                                      
                                                         WAJAX CORPORATION
                                                CONDENSED CONSOLIDATED STATEMENTS OF
                                                  CHANGES IN SHAREHOLDERS' EQUITY
                                           ______________________________________________
                                                                                                 
                                                                            Accumulated                 
                                                                              other
                                                                          comprehensive
                                                                          (loss) income
                                                                            ("AOCL")
                                                                                                 

For the nine                       Share     Contributed       Retained       Cash flow        
months ended                     capital         surplus       earnings          hedges
September 30,
2012
(unaudited,
in thousands
of Canadian
dollars)            Note                                                                           Total
                                                                                                        

January 1,                   $   105,371           4,888        117,477           (150)     $    227,586
2012
                                                                                                        

Net earnings                           -               -         51,745               -           51,745
                                                                                                        

Other                                  -               -              -            (50)             (50)
comprehensive
loss
                                                                                                        

Total                                  -               -         51,745            (50)           51,695
comprehensive
income for
the period

Shares issued                      1,280         (1,280)              -               -                -
to settle
share-based
compensation
plans

Dividends              7               -               -       (38,232)               -         (38,232)

Share-based            8               -             519              -               -              519
compensation
expense

September 30,                $   106,651           4,127        130,990           (200)     $    241,568
2012
                                                                                                 
                                                                WAJAX CORPORATION
                                                       CONDENSED CONSOLIDATED STATEMENTS OF
                                                         CHANGES IN SHAREHOLDERS' EQUITY
                                                  _____________________________________________
                                                                                                         
                                                                                          AOCL                  
                                                                                                         

For the nine                       Share         Trust     Contributed     Retained        Cash        
months ended                     capital         units         surplus     earnings        flow
September 30,                                                                            hedges
2011
(unaudited,
in thousands
of Canadian
dollars)            Note                                                                                   Total
                                                                                                                

January 1,                   $         -       105,371           3,931       91,805     (1,777)     $    199,330
2011
                                                                                                                

Conversion to                    105,371     (105,371)               -            -           -                -
corporation
                                                                                                                

Net earnings                           -             -               -       47,242           -           47,242
                                                                                                                

Other                                  -             -               -            -       2,630            2,630
comprehensive
income
                                                                                                                

Total                                  -             -               -       47,242       2,630           49,872
comprehensive
income for
the period

Dividends              7               -             -               -     (25,609)           -         (25,609)

Share-based            8               -             -           1,343            -           -            1,343
compensation
expense

September 30,                $   105,371             -           5,274      113,438         853     $    224,936
2011
                                                                                                         
                                              WAJAX CORPORATION
                                    CONDENSED CONSOLIDATED STATEMENTS OF
                                                 CASH FLOWS
                                          _________________________
                                                                              
                                    Three months ended             Nine months ended
                                     September 30                  September 30

(unaudited, in       Note           2012           2011           2012           2011
thousands of
Canadian
dollars)

OPERATING                                                                            
ACTIVITIES

  Net earnings                $   16,175     $   17,888     $   51,745     $   47,242

  Items not                                                                          
  affecting cash
  flow:


Depreciation                                                                     
  and
  amortization 
  Rental                       2,079          1,301          5,479          3,367
  equipment 
  Property,                    1,286          1,142          3,598          3,177
  plant and
  equipment 
  Assets                         867            783          2,604          2,229
  under finance
  lease 
  Intangible                     360            320          1,090            901
  assets 
(Gain) loss on        4           (17)              2            129           (14)
  disposal of
  property,
  plant and
  equipment 
Share rights          8            222            431            519          1,343
  plans
  compensation
  expense 
Non-cash                         (374)          (129)          (663)          (178)
  rental income 
Employee                            21          (270)             15          (524)
  benefits
  expense
  (income), net
  of payments 
Non-cash loss                      295              -            313              -
  on derivative
  instruments 
Finance costs                    1,161          1,392          3,105          3,477 
Income tax            9          5,669          6,692         18,693         17,759
  expense 
Cash flows from
operating
activities
before changes 
in operating
assets and
liabilities                       27,744         29,552         86,627         78,779 
Changes in                                                                           
operating assets
and liabilities: 
Trade and                       11,386        (3,588)       (10,239)       (41,964)
  other
  receivables 
Inventories                    (5,281)       (12,462)       (47,889)       (24,569) 
Prepaid                          2,447        (2,207)          1,679        (2,106)
  expenses 
Accounts                      (31,631)         18,601       (31,434)         21,072
  payable and
  accrued
  liabilities 
Provisions                       (112)            726        (1,102)            659 
                            (23,191)          1,070       (88,985)       (46,908) 
Cash flows                         4,553         30,622        (2,358)         31,871
generated from
(used in)
operating
activities 
Rental                3        (7,926)        (3,472)       (21,493)       (15,181)
  equipment
  additions 
Provisions,                      (210)            233            568            270
  non-current 
Other                              489            633        (3,790)        (1,216)
  liabilities 
Finance costs                  (1,072)        (1,295)        (2,741)        (3,121)
  paid 
Income taxes                      (25)           (61)          (500)           (98)
  paid 
Net cash flows                   (4,191)         26,660       (30,314)         12,525
(used in)
generated from
operating
activities 
                                                                                  
INVESTING                                                                            
ACTIVITIES 
Property,             4        (1,469)          (811)        (5,648)        (2,775)
  plant and
  equipment
  additions 
Proceeds on           4            108             28            495             85
  disposal of
  property,
  plant and
  equipment 
Intangible                       (168)           (50)          (205)          (293)
  assets
  additions 
Acquisition of                       -        (1,654)              -       (23,257)
  business 
Net cash flows                   (1,529)        (2,487)        (5,358)       (26,240)
used in
investing
activities 
                                                                                  
FINANCING                                                                            
ACTIVITIES 
Increase              5         29,000        (7,000)         62,998          7,000
  (decrease) in
  bank debt 
Debt facility         5              7        (1,072)          (225)        (1,072)
  amendment
  income
  (expense) 
Finance lease                    (339)          (916)        (1,734)        (2,509)
  payments 
Dividends paid                (13,557)        (9,312)       (37,039)       (34,755) 
Net cash flows                    15,111       (18,300)         24,000       (31,336)
generated from
(used in)
financing
activities 
Net change in                      9,391          5,873       (11,672)       (45,051)
cash 
(Bank                           (15,404)        (7,970)          5,659         42,954
indebtedness)
cash - beginning
of period 
Bank                          $  (6,013)     $  (2,097)     $  (6,013)     $  (2,097)
indebtedness -
end of period 
                                                                         
WAJAX CORPORATION 
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS 
___________________________ 
SEPTEMBER 30, 2012
(unaudited, amounts in thousands of Canadian dollars, except share and per 
share data) 
1. COMPANY PROFILE 
Wajax Corporation (the "Corporation") is incorporated in Canada. The address 
of the Corporation's registered office is 3280 Wharton Way, Mississauga, 
Ontario, Canada. The Corporation's core distribution businesses are engaged in 
the sale and after-sale parts and service support of equipment, power systems 
and industrial components, through a network of 118 branches across Canada. 
The Corporation is a multi-line distributor and represents a number of leading 
worldwide manufacturers across its core businesses. Its customer base is 
diversified, spanning natural resources, construction, transportation, 
manufacturing, industrial processing and utilities. 
2. BASIS OF PREPARATION 
Statement of compliance
These condensed consolidated financial statements have been prepared in 
accordance with International Accounting Standard 34 Interim Financial 
Reporting and do not include all of the disclosures required for full 
consolidated financial statements. Accordingly, these condensed consolidated 
financial statements should be read in conjunction with the audited 
consolidated financial statements of Wajax Corporation for the year ended 
December 31, 2011. The significant accounting policies follow those 
disclosed in the most recently reported audited consolidated financial 
statements. 
Basis of measurement
The condensed consolidated financial statements have been prepared under the 
historical cost basis except for derivative financial instruments and 
liabilities for cash-settled share-based payment arrangements that have been 
measured at fair value. The employee benefit liability is recognized as the 
net total of the pension plan assets, plus unrecognized past service cost and 
unrecognized actuarial losses, less unrecognized actuarial gains and losses 
and the present value of the defined benefit obligation. 
Functional and presentation currency
These condensed consolidated financial statements are presented in Canadian 
dollars, which is the Corporation's functional currency. All financial 
information presented in Canadian dollars has been rounded to the nearest 
thousand, unless otherwise stated and except share and per share data. 
3. RENTAL EQUIPMENT 
The Corporation acquired rental equipment with a cost of $7,926 during the 
quarter (2011 - $3,472) and $21,493 year to date (2011 - $15,181). Rental 
equipment with a carrying amount of $596 during the quarter (2011 - $230) and 
$1,246 year to date (2011 - $2,296) ceased to be rented and was classified as 
held for sale in the normal course of business and transferred to inventories. 
4. PROPERTY, PLANT AND EQUIPMENT 
The Corporation acquired property, plant and equipment with a cost of $1,469 
during the quarter (2011 - $811) and $5,648 year to date (2011 - $2,775). 
Assets with a carrying amount of $91 during the quarter (2011 - $30) and $624 
year to date (2011 - $71) were disposed of, resulting in gains on disposal of 
$17 during the quarter (2011 - loss of $2) and losses on disposal of $129 year 
to date (2011 - gain of $14). 
5. BANK DEBT 
On May 24, 2012, the Corporation amended its bank credit facility to increase 
the limit of the revolving term portion of the facility by $50,000 on 
substantially the same terms and conditions as the existing facility. The 
fully secured facility, due August 12, 2016, is now comprised of a $30,000 
non-revolving term portion and a $195,000 revolving term portion. The $225 
cost of amending the facility has been capitalized and will be amortized over 
the remaining term of the facility. 
6. SHARE CAPITAL 
                          Number of Shares                  Amount 
Balance, January 1,                 16,629,444       $         105,371
2012 
Shares issued to                       107,003                   1,280
settle share-based
compensation plans 
Balance, September                  16,736,447       $         106,651
30, 2012 


                                                                

7. DIVIDENDS DECLARED

During the three months ended September 30, 2012, the Corporation declared 
cash dividends of $0.81 per share or $13,557 (September 30, 2011, dividends of 
$0.58 per share or $9,645).

Year to date, the Corporation declared cash dividends of $2.29 per share or 
$38,232 (September 30, 2011, dividends of $1.54 per share or $25,609).

The Corporation has declared dividends of $0.27 per share or $4,519 in the 
month of October 2012.

8. SHARE-BASED COMPENSATION PLANS

The Corporation has five share-based compensation plans: the Wajax Share 
Ownership Plan ("SOP"), the Deferred Share Program ("DSP"), the Directors' 
Deferred Share Unit Plan ("DDSUP"), the Mid-Term Incentive Plan for Senior 
Executives ("MTIP") and the Deferred Share Unit Plan ("DSUP").

a) Share Rights Plans
The Corporation recorded compensation cost of $222 for the quarter (2011 - 
$431) and $519 for the year to date (2011 - $1,343) in respect of these plans.

Share Ownership            September 30, 2012      September 30, 2011
Plan
                            Number        Fair      Number        Fair
                                of       value          of       value
                            Rights          at      Rights          at
                                          time                    time
                                            of                      of
                                         grant                   grant

Outstanding at             109,788     $ 1,024     101,999     $ 1,024
beginning of year

Granted - new               14,311         725           -           -
in the  grants
period
        - dividend           4,009           -       5,977           -
        equivalents

Settled in the            (55,522)       (471)           -           -
period

Outstanding at end          72,586     $ 1,278     107,976     $ 1,024
of period
                                                                

At September 30, 2012, 53,225 SOP rights were vested (September 30, 2011 - 
99,077).

Deferred Share             September 30, 2012       September 30, 2011
Program
                          Number          Fair     Number          Fair
                              of         value         of         value
                          Rights            at     Rights            at
                                       time of                  time of
                                         grant                    grant

Outstanding at            30,216     $     750     24,164     $     600
beginning of year

Granted - new                  -             -      3,989           150
in the  grants
period
        - dividend         1,475             -      1,565             -
        equivalents

Outstanding at end        31,691     $     750     29,718     $     750
of period
                                                               

All DSP rights have vested at September 30, 2012 (no rights had vested at 
September 30, 2011).

Directors' Deferred        September 30, 2012      September 30, 2011
Share Unit Plan
                            Number        Fair      Number        Fair
                                of       value          of       value
                            Rights          at      Rights          at
                                          time                    time
                                            of                      of
                                         grant                   grant

Outstanding at             176,591     $ 3,134     147,797     $ 2,509
beginning of year

Granted - new                9,106         423      11,907         424
in the  grants
period
        - dividend           7,778           -       8,816           -
        equivalents

Settled in the            (51,481)       (809)           -           -
period

Outstanding at end         141,994     $ 2,748     168,520     $ 2,933
of period
                                                                

DDSUP rights vest immediately upon grant.

b) Mid-Term Incentive Plan for Senior Executives ("MTIP")
The Corporation recorded compensation cost of $293 for the quarter (2011 - 
$591) and $2,868 for the year to date (2011 - $2,150) in respect of the 
share-based portion of the MTIP. At September 30, 2012, the carrying amount 
of the share-based portion of the MTIP liability was $6,166 (2011 - $6,002).

c) Deferred Share Unit Plan ("DSUP")
The Corporation recorded compensation cost of $104 for the quarter (2011 - 
$142) and $298 for the year to date (2011 - $142) in respect of the DSUP. At 
September 30, 2012, the carrying amount of the DSUP liability was $467 (2011 - 
$142).

9. INCOME TAXES

Income tax expense comprises current and deferred tax as follows:

For the nine months ended                      2012               2011
September  30

Current                              $       40,430     $          716

Deferred - Origination and                 (21,692)             17,867
         reversal of
         temporary
         difference
         - Change in tax                       (45)              (824)
         law and rates

Income tax expense                   $       18,693     $       17,759
                                                               

The calculation of current tax is based on a combined federal and provincial 
statutory income tax rate of 26.2% (2011 - 27.7%). The tax rate for the 
current year is 1.5% lower than 2011 due to the effect of the reduced 
statutory tax rates. Deferred tax assets and liabilities are measured at tax 
rates that are expected to apply to the period when the asset is realized or 
the liability is settled. Deferred tax assets and liabilities have been 
measured using an expected average combined statutory income tax rate of 26.1% 
based on the tax rates in years when the temporary differences are expected to 
reverse.

The reconciliation of effective income tax is as follows:

For the nine months ended                       2012               2011
September  30

Combined statutory income                      26.2%              27.7%
tax rate

Expected income tax expense           $       18,455     $       18,005
at statutory rates

Non-deductible expenses                          383                619

Deferred tax related to                         (45)              (824)
changes in tax law and
rates

Other                                          (100)               (41)

Income tax expense                    $       18,693     $       17,759
                                                                  

Recognized deferred tax assets and liabilities

Recognized deferred tax assets and liabilities are comprised as follows:
                                           September         December
                                            30, 2012         31, 2011

Accrued liabilities                      $     5,380     $      5,249

Provisions                                     1,431            2,504

Employee benefits                              1,777            1,752

Property, plant and                          (1,890)          (1,773)
equipment

Finance leases                                    85            (195)

Intangible assets                            (2,740)          (2,355)

Deferred financing costs                          40             (29)

Partnership income not                         (421)         (23,236)
currently taxable

Tax loss carryforwards                           325              333

Derivative instruments                            71               56

Net deferred tax assets                  $     4,058     $   (17,694)
(liabilities)
                                                              

10. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings 
per share:
                          Three months ended                 Nine months ended
                             September 30                      September 30
                          2012             2011             2012             2011

Numerator                                                                        
for basic
and diluted
earnings
per share:

- net             $     16,175     $     17,888     $     51,745     $     47,242
earnings

Denominator                                                                      
for basic
earnings
per share:

- weighted
average             16,736,447       16,629,444       16,687,593       16,629,444
shares

Denominator                                                                      
for diluted
earnings
per share:

- weighted          16,736,447       16,629,444       16,687,593       16,629,444
average
shares

- effect of            227,247          294,679          259,443          287,184
dilutive
share
rights

Denominator         16,963,694       16,924,123       16,947,036       16,916,628
for diluted
earnings
per share

Basic             $       0.97     $       1.08     $       3.10     $       2.84
earnings
per share

Diluted           $       0.95     $       1.06     $       3.05     $       2.79
earnings
per share
                                                                        

No share rights were excluded from the above calculations as none were 
anti-dilutive.

11. OPERATING SEGMENTS

The Corporation operates through a network of 118 branches in Canada in three 
core businesses which reflect the internal organization and management 
structure according to the nature of the products and services provided. The 
Corporation's three core businesses are: i) the distribution, modification and 
servicing of equipment; ii) the distribution, servicing and assembly of power 
systems; and iii) the distribution, servicing and assembly of industrial 
components.
                                                                                          

For the                                                                Segment          
three months                                                      Eliminations
ended                                                                      and
September                            Power       Industrial        Unallocated
30, 2012           Equipment       Systems       Components            Amounts             Total

Equipment        $   122,300     $  27,383     $          -     $            -     $     149,683

Parts                 38,526        31,114           82,909                  -           152,549

Service               23,177        15,863            4,575                  -            43,615

Rental and                                                                              
other                 10,190         1,234                -              (875)            10,549

Revenue          $   194,193     $  75,594     $     87,484     $        (875)     $     356,396

Segment                                                                                 
earnings
before
finance
costs and
income taxes     $    13,306     $   6,004     $      5,511     $                  $      24,821

Corporate                                                                               
costs and
eliminations                                                           (1,816)           (1,816)

Earnings                                                                                
before
finance
costs
and income
taxes                 13,306         6,004            5,511            (1,816)            23,005

Finance                                                                                 
costs                                                                    1,161             1,161

Income tax                                                                              
expense                                                                  5,669             5,669

Net earnings     $    13,306     $   6,004     $      5,511     $      (8,646)     $      16,175
                                                                                                

For the nine                                                           Segment        
months ended                                                      Eliminations
September                                                                  and
30, 2012                             Power       Industrial        Unallocated
                   Equipment       Systems       Components            Amounts             Total

Equipment        $   356,832     $  93,518     $          -     $            -     $     450,350

Parts                123,203       103,738          260,485                  -           487,426

Service               70,493        52,087           14,239                  -           136,819

Rental and                                                                            
other                 26,337         3,924                -            (3,771)            26,490

Revenue          $   576,865     $ 253,267     $    274,724     $      (3,771)     $   1,101,085

Segment                                                                               
earnings
before
finance
costs and
income taxes     $    42,135     $  21,115     $     18,523     $                  $      81,773

Corporate                                                                             
costs and
eliminations                                                           (8,230)           (8,230)

Earnings                                                                              
before
finance
costs
and income
taxes                 42,135        21,115           18,523            (8,230)            73,543

Finance                                                                               
costs                                                                    3,105             3,105

Income tax                                                                            
expense                                                                 18,693            18,693

Net earnings     $    42,135     $  21,115     $     18,523     $     (30,028)     $      51,745
                                                                                                

As at                                                                                 
September
30, 2012                                                                                        

Segment                                                                               
assets
excluding
intangible
assets           $   307,928     $ 144,692     $    121,398     $                  $     574,018

Intangible                                                                            
assets                21,906        14,558           47,139                  5            83,608

Corporate                                                                             
and other
assets                                                                   3,792             3,792

Total assets     $   329,834     $ 159,250     $    168,537     $        3,797     $     661,418
                                                                                                

For the                                                                Segment          
three months                                                      Eliminations
ended                                                                      and
September                            Power       Industrial        Unallocated
30, 2011           Equipment       Systems       Components            Amounts             Total

Equipment        $   108,446     $  44,682     $          -     $            -     $     153,128

Parts                 40,407        36,787           82,113                  -           159,307

Service               21,027        15,842            4,614                  -            41,483

Rental and                                                                              
other                  8,048           662                -              (708)             8,002

Revenue          $   177,928     $  97,973     $     86,727     $        (708)     $     361,920

Segment                                                                                 
earnings
before
finance
costs and
income taxes     $    12,714     $   9,745     $      6,215     $                  $      28,674

Corporate                                                                               
costs and
eliminations                                                           (2,702)           (2,702)

Earnings                                                                                
before
finance
costs
and income
taxes                 12,714         9,745            6,215            (2,702)            25,972

Finance                                                                                 
costs                                                                    1,392             1,392

Income tax                                                                              
expense                                                                  6,692             6,692

Net earnings     $    12,714     $   9,745     $      6,215     $     (10,786)     $      17,888
                                                                                          

For the nine                                                           Segment          
months ended                                                      Eliminations
September                                                                  and
30, 2011                             Power       Industrial        Unallocated
                   Equipment       Systems       Components            Amounts             Total

Equipment        $   280,032     $ 113,529     $          -     $            -     $     393,561

Parts                129,184        90,236          243,808                  -           463,228

Service               61,843        44,805           13,538                  -           120,186

Rental and                                                                              
other                 22,493         3,366                -            (2,916)            22,943

Revenue          $   493,552     $ 251,936     $    257,346     $      (2,916)     $     999,918

Segment                                                                                 
earnings
before
finance
costs and
income taxes     $    35,856     $  25,030     $     17,204     $                  $      78,090

Corporate                                                                               
costs and
eliminations                                                           (9,612)           (9,612)

Earnings                                                                                
before
finance
costs
and income
taxes                 35,856        25,030           17,204            (9,612)            68,478

Finance                                                                                 
costs                                                                    3,477             3,477

Income tax                                                                              
expense                                                                 17,759            17,759

Net earnings     $    35,856     $  25,030     $     17,204     $     (30,848)     $      47,242
                                                                                                

As at                                                                                   
September
30, 2011                                                                                        

Segment                                                                                 
assets
excluding
intangible
assets           $   243,857     $ 143,400     $    112,371     $                  $     499,628

Intangible                                                                              
assets                21,660        14,836           47,888                 11            84,395

Corporate                                                                               
and other
assets                                                                   1,912             1,912

Total assets     $   265,517     $ 158,236     $    160,259     $        1,923     $     585,935
                                                                                                

Segment assets do not include assets associated with the corporate office or 
income tax balances. Additions to corporate assets, and depreciation of 
these assets, are included in segment eliminations and unallocated amounts.

12. SUBSEQUENT EVENT

On October 22, 2012, Wajax Industrial Components acquired all of the issued 
and outstanding shares of ACE Hydraulic Limited, a hydraulic cylinder repair 
business located in Bathurst, New Brunswick with revenues of approximately 
$2.0 million. The consideration for the business was $1.7 million, subject to 
post-closing adjustments. The acquisition represents a step towards the 
segment's strategy of expanding its engineering, service and repair 
capabilities across Canada.

















Mark Foote, President and Chief Executive Officer Email:mfoote@wajax.com

John Hamilton, Chief Financial Officer Email:jhamilton@wajax.com

Telephone #: (905) 212-3300

SOURCE: Wajax Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/06/c3638.html

CO: Wajax Corporation
ST: Ontario
NI: MAC ERN CONF 

-0- Nov/06/2012 13:42 GMT


 
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