The latest trading statement issued by Wolseley, covering the five months to December 31 2007, shows, as has been the recent trend, impressive revenue increases in European revenue, offsetting an increasingly weaker US performance.
The period saw revenue increase 17% in Europe with trading profit rising 1% and particularly strong performances in the UK, Switzerland, the Netherlands and the Nordic region.
However, the same five months saw revenue drop 10% in the US and a trading profit plummet by a massive 40% meaning the group posted a fall in trading profit of 25% over all.
The company has said that it expects conditions to worsen and they will continue to curtail capital spend and cut their cost base in order to limit the potential damage of a further weakening in the US market.
Group ceo Chip Hornsby said: ” We have acted decisively and rapidly in response to the challenging market conditions to take cost out of the group and will continue to do so. We remain committed to our strategy and are confident that with our size, scale, financial strength and operating efficiencies, we will emerge from this slowdown as a stronger group with an excellent platform for future growth.”