1)
Interest in diesel power seems to be quite high in Canada and -- as
far as passenger cars, SUVs and minivans go -- almost non-existent in
the U.S.
***
Henninger's Diesel Limited is Northern Ontario's only authorized
distributor/dealer for all the major fuel-injection manufacturing
companies, and the Duetz diesel engine. (source:Northern Ontario
Business, 1 October 2005)
****
extract from WAJAX ANNUAL REPORT
Diesel engines are widely recognized for powering large transport
trucks. They also power numerous other modes of transportation
vehicles in a wide variety of industries including agriculture,
construction, forestry, marine, military, mining and petroleum, as
well as serving power generation markets. Combining decades of
practical field experience, technical proficiency and innovative
engineering, our products and our people power Canadian industry.
Organic growth in our business continues to come from our many parts
and service outlets located in western Canada, Quebec and the
Maritimes. We have added new niche product lines across our entire
branch network that complement our core offerings. We work closely
with our manufacturers and will continue to leverage our strong
partnerships going forward to meet customer and industry needs. To
enhance profitability, we will focus on growing our highly stable and
sustainable parts and service business, capitalizing on the solid
growth in equipment sales generated over the last several years
Once again in 2004, our Diesel Engines business has performed well as
sales rose nearly 3% primarily due to higher equipment and parts and
service sales in the western Canadian oil and gas sector. Revenues in
Diesel Engines increased $4.8 million year-over-year, however,
earnings declined $0.5 million as a result of higher selling and
administrative costs.
DIESEL ENGINES 2004 2003
Equipment sales $ 73.5 $ 63.1
Parts and service $ 98.2 $ 103.8
Gross revenue $ 171.7 $ 166.9
Segment earnings $ 15.2 $ 15.7
generated primarily by lower margin equipment sales, segment earnings declined
slightly from $15.7 million to $15.2 million. We expect our diesel engine
distributors in Alberta and Quebec and the Maritimes will produce another year
of strong stable earnings and cash flow in 2005 as they take on niche products
to supplement organic growth opportunities.
*
REVENUE BY MARKET 2004 VERSUS 2003
2004 2003
On-highway transportation 40% 42%
Mining/Oil & Gas 34% 33%
Industrial/Commercial/Other 26% 25%
Revenues increased $4.8 million to $171.7 million from $166.9 million
in 2003. The strengthening Canadian dollar relative to the U.S. dollar
had the effect of decreasing Diesel Engine revenues by $5.1 million
for the year. Earnings decreased $0.5 million to $15.2 million
compared to $15.7 million the previous year. The following events
affected revenues and earnings:
Revenues at the Waterous operation in Alberta increased $9.0 million,
or 10%, compared to 2003. Equipment sales improved $8.8 million due
mainly to increases in sales to the oil and gas sector. Parts and
service revenues increased $0.2 million as an increase in truck shop
activity more than offset the impact of lower parts sales to
Freightliner dealers and fewer engine rebuilds compared to last year.
Revenues at the Company?s Quebec and Maritimes operation, Detroit
Diesel-Allison Canada East, decreased
$4.2 million or 5% compared to 2003. Lower parts sales to Freightliner
dealers and a general softness in the economy , more than offset
increases from the Moncton branch which opened in late 2003 and an
increase in generator s et sales compared to last year.
Segment earnings decreased $0.5 million as the positive impact of
higher volumes was offset by higher selling and administrative
expenses at Waterous which included higher personnel costs and other
volume related expenses.
The Company?s two Detroit Diesel distributorships have traditionally
yielded strong and stable earnings and cash flows. Management believes
organic revenue growth opportunities centre on adding niche products
to complement their core offering of Detroit Diesel (DDC) engines,
Allison transmissions and Kohler and DDC generators. These niche
product opportunities include a biogas engine line and heating and
cooling truck cab products. As well, over time, these organizations
will continue to focus on the retail after-market and continue to add
replacement facilities which should better position them to capture a
greater share of the parts and service market in the on-highway market
segment.
The Power System (formerly Diesel Engines) business competes with
other major diesel engine distributors representing such products as
Cummins and Caterpillar. Competition is based primarily on product
quality and pricing.
source of info: annual reports ---- http://www.wajax.com/irfinancial.htm
********
Later you or any researcher could also look for info on CUMMINS and Caterpillar.
*****
(2) The emission standards for all categories diesel engine;
conventional guarantee for them.
STANDARDS: http://www.dieselnet.com/standards/ca/
********
Best Regards |
