Building supplies group Wolseley warns of more cost cuts

Jul 16 2008 LDP Business

BUILDING supplies group Wolseley said today it had cut 6,000 jobs in the space of a year as it battles deteriorating conditions in its key markets.

The group, which employs 75,000 people worldwide, warned cost reduction measures will continue in the UK, where it has seen a “rapid” downturn in conditions.

Trading profits in the UK and Ireland fell 17% in the 11 months to June 30, including restructuring costs in Ireland of £9 million after headcount was reduced by 150 people and 13 branches were closed.

The Reading-based company, which earns around half of its annual £16 billion sales across the Atlantic, is best known for its Build Center and Plumb Center trading names.

Wolseley said overall trading profits were 28% lower in the period, with group revenues up 1% after benefiting from acquisitions.

It said trading conditions in most of its markets had deteriorated since its last update in mid-May, when it said UK profits fell by 6% in the nine months to April 30.