In their first interim statement, published this week, it’s clear that Wolseley is having a tough time the US. However, a strong European performance has done a lot to offset this.
The US performance includes a drop in revenue of approximately 10% and a fall in trading profit of around 30%. This has lead to 1,700 redundancies already, with a further 1,300 planned for the coming quarter. This represents a saving of £60m according to the company.
It’s a different story here in Europe, with revenue up 25% and profits by 15%. The UK performance was one of the strongest.
Wolseley chief executive Chip Hornsby said: “The Group continues to take swift and decisive action in the more challenging business conditions. Although sales trends and the outlook are uncertain, we remain committed to our strategy.
“Whilst keeping a tight control on costs, we will continue to invest to create competitive advantage. We remain confident that with our size, scale and financial strength, we will emerge from this slowdown as a stronger competitor with an excellent platform for future growth.”