In a pre-close trading statement issued today, Wolseley has announced a 5% slide in group profit for the 11 months to June 30.
The figures are based on a comparison with the same period last year and the group has pointed to the US arm of the operation to explain the below par performance.
Panel and timber prices in the US have remained low and the US new housing market, which accounts for about a quarter of the group’s revenue, has “slowed significantly” the company said.
However, the European story is somewhat different, with revenue in sterling, including acquisitions, increased by more that 45% in the period, with an increase in trading profit of around 35%.
Wolseley UK, including Irelands, achieved “strong revenue growth” at 15% said the company, around 10% of which came from organic growth “reflecting market share gains across most brands”. However, the trading margin only grew by around 5% in the period because, among other factors, “of competitive market conditions in the first half.” However, the company added that this “has shown the expected upward trend in the second half.”
The preliminary results for the 12 months ending July 31, 2007 are due to be announced on September 24.