Know what you want? Try our 'Supplier Directory' 

Wolseley takes profit hit from US housing market

Wolseley, the world's biggest distributor of plumbing and heating products, saw its profit before tax fall 7.3% to £758m in the year to July end.
Wolseley takes profit hit from US housing market
Today, Wolseley published its preliminary results for the year ended July 31 2007 and reported its first profit fall in more than ten years. The group admitted the US housing market crisis had affected business sectors such as repair and maintenance in North America but its European operations looked in good shape.

In North America, where Wolseley generates roughly half of its sales, trading profit fell 19% to £487m. Wolseley said: 'Recent events relating to the subprime market in the USA and the subsequent concerns over liquidity in global financial markets have created uncertainty which is reflected in less favourable recent sales trends for a number of the group's businesses. It is too early to assess whether these trends will continue.

'There are no signs yet of any upturn in the US housing market and the repairs, maintenance and improvement ('RMI') market is now beginning to soften'.

In contrast, Wolseley's trading profit in Europe was up 36.9%. The group said most of the European operations achieved good revenue and profit improvements and the results also benefited from acquisitions which expanded the group's geographic diversity.

'Wolseley UK grew strongly in a market which showed a gradually improving trend over the year, despite rising interest rates'. It said government spending on schools, hospitals and social housing RMI underpinned the construction market.

Wolseley UK and Ireland recorded a 17.9% increase in revenue to £3,171m. Trading profit increased by 5% compared to the previous year, including the benefit from acquisitions. During the year, 59 new locations were added in the UK and Ireland.

Chip Hornsby, Wolseley plc group chief executive said:
'Despite the ongoing difficulties in the US housing market, we have produced a very creditable performance. Europe continues to progress, achieving strong profit improvement and benefiting from acquisitions during the period, whilst in the US we have been fast and decisive in reducing our cost base in reaction to deteriorating market conditions'.
24 September 2007

Comments

Already Registered?
Login
Not Yet Registered?
Register

Inspire the next generation, urges CIBSE president

Inspiring and supporting the next generation of engineers will help society solve the big technical and scientific challenges of today and tomorrow, Kevin Mitchell, incoming President of the Chartered Institution of Building Services Engineers (CIBSE) said in his Presidential Address.

"Research shows that the most talented young people - those who have a choice of profession - are increasingly drawn to careers where they believe their work will have a positive impact on the world. I would argue that there are few careers that offer more opportunity to deliver real change than that of a Building Services Engineer," he said.

  11-May-2022

Rinnai CPD on hot water applications, the instantaneous approach

Rinnai has issued a CPD – ‘Hot water applications relying on gas – The Instantaneous approach’ with an analysis that shows the following savings: Nearly 20% of the operating cost, over 30% of the capital cost, over 15% reduction in Carbon Footprint, ...

  12-May-2022

If you need to open a Solenoid Valve manually, you need a SVOM!

If you need to open a Solenoid Valve manually, you need a SVOM!
  22-Oct-2021
Heating & Ventilating Review is the number one magazine in the HVAR industry. Don’t miss out, subscribe today!
Subcribe to HVR

Diary

BESA CONFERENCE