Building supplies specialist Wolseley has reported a jump in trading profits on the back of healthy growth in the US, it has been announced.
The UK-based company’s trading profits for the three months ending 30 April rose to £131 million, up 30 per cent from a year earlier. Revenue also rose, by one per cent to £3.27 billion.
Growth of 10 per cent in like-for-like revenue in the US helped to offset weaker growth in the UK, due to a slowdown in the construction industry.
The group is expected to meet its full-year targets, the company said. The full year results will be issued on 4 October 2011.
Wolseley is the world's largest specialist trade distributor of plumbing and heating products to professional contractors. The company is also a leading supplier of building materials in North America, the UK and Continental Europe.
Commenting, CEO Ian Meakins said: “The group continued to make progress in the third quarter broadly maintaining the revenue growth trends achieved in the first half despite tougher comparatives. New residential construction, which accounts for 20 per cent of group revenue, remained subdued in most regions, while demand in repair, maintenance and improvement (RMI) segments held up well in most markets.”
He continued: “Like-for-like revenue growth continues to be strongest in the USA, with positive momentum in the Nordics and France offset by weaker trends in the UK and Canada. We continue to maintain our emphasis on protecting market share and gross margins whilst keeping a tight control of the cost base. Management remains confident of meeting our expectations for the full year.”
Group revenue for the year ending 31 July 2010 was £13.2 billion and trading profit was £450 million. Headquartered in Warwickshire, Wolseley has approximately 47,000 employees operating in 25 countries worldwide.
