Profits decline at Wolseley

Wolseley, the world’s largest distributor of plumbing and heating products, announced a 7.3% decline in full-year profits – knocked by the weak U.S. housing market and cautioned that the weakness may persist.

The group posted £758 million pounds of profit before tax and amortisation in the 12 months to end-July, just under the analysts’ average forecast of £761.4 million. Group revenue increased 14.6% to £16.2 billion.

The company said in a statement there is no indications yet of any upturn in the U.S. housing market. The group added that the doubt surrounding the U.S. subprime mortgage crisis has affected sales at a number of its businesses and warned that it is too soon to forecast whether this will continue.

In its European businesses, the group expects to make further good progress as it predicts strong construction markets continuing. In North America, trading profit declined 19.2% to £487 million, one-off cost charges related to branch closures and job losses are said to be responsible for the fall.

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