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Wolseley hit by housing slowdown | Wolseley hit by housing slowdown |
(about 2 hours later) | |
Building materials giant Wolseley has said its trading profit has fallen 28% in the past 11 months and warned market conditions in the UK may get worse. | Building materials giant Wolseley has said its trading profit has fallen 28% in the past 11 months and warned market conditions in the UK may get worse. |
As well as problems in the UK, the US housing slump has also hit profits as Wolseley makes half its sales there. | As well as problems in the UK, the US housing slump has also hit profits as Wolseley makes half its sales there. |
The world's biggest distributor of plumbing materials said it had cut 6,000 jobs since August last year. | The world's biggest distributor of plumbing materials said it had cut 6,000 jobs since August last year. |
The group, which operates Plumb Center and Build Center in Britain, has also axed its final dividend to cut costs. | The group, which operates Plumb Center and Build Center in Britain, has also axed its final dividend to cut costs. |
The deterioration in some of our key markets continues and it is likely that conditions will get tougher still Chip Hornsby, Wolseley chief executive See Wolseley's share price | |
Wolseley said it was taking actions to ensure that it did not break its banking agreements. | Wolseley said it was taking actions to ensure that it did not break its banking agreements. |
Tough times | Tough times |
The company, which employs 75,000 people worldwide, has already cut about 10,000 jobs over the past 18 months, most of them in the US. | The company, which employs 75,000 people worldwide, has already cut about 10,000 jobs over the past 18 months, most of them in the US. |
Wolseley's chief executive Chip Hornsby warned the company would continue its cost cutting plan in the UK, where the economic climate had worsened. | |
"The deterioration in some of our key markets continues and it is likely that conditions will get tougher still." | "The deterioration in some of our key markets continues and it is likely that conditions will get tougher still." |
In its trading update, the Reading-based group said trading profits in the UK and Ireland fell 17%. | In its trading update, the Reading-based group said trading profits in the UK and Ireland fell 17%. |
In Ireland, Wolseley has shed 150 jobs and closed 13 branches in the past few months. | In Ireland, Wolseley has shed 150 jobs and closed 13 branches in the past few months. |
"Slumping property markets are clearly taking their toll," said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers. | "Slumping property markets are clearly taking their toll," said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers. |
"The fallout from the housebuilders is rippling out to the secondary building and plumbing merchants such as Wolseley." | "The fallout from the housebuilders is rippling out to the secondary building and plumbing merchants such as Wolseley." |
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