Wolseley PLC, a distributor of plumbing, heating and building products to contractors, said Monday earnings for the five months ended Dec. 31 were hurt by the slowdown in the housing market, lower lumber prices in the U.S. and the weak dollar.
Profit before tax and amortization of acquired intangibles for the period was 14 percent lower than the year-ago period, hurt by special items and a higher interest charge relating to acquisition spend and increased interest rates.
[Editor's Note: Sir John Templeton warns of market, housing crash – Read More Here]
Wolseley, which is based in the U.K., said revenue for the period grew 15 percent while trading profit for the same period was slightly lower, the company said.
In constant currency, revenue and trading profit would have been about 5 percent higher, the company said.
Results were helped by organic revenue growth in its U.S. plumbing and heating business and improved performance in continental Europe. Organic growth typically excludes the effects of acquisitions.
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Trading profit fell 15 percent in North America, while revenue grew 2 percent.
In Europe, profit grew 25 percent while revenue grew 40 percent.
The company expects the U.S. housing market slump to continue over several months.
Wolseley said it will release six-month results for the period ending Jan. 31 on March 19.
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Editor's note:
Sir John Templeton warns of market, housing crash – Read More Here
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