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Housing Down, Hit Plumb Center

Wolseley, owner of plumb center and parts center has reported a 77% drop in profits, mostly as a result of the slowdown in the housing market in the US and in the UK.The company reported that pre-tax profits for the year to 31st July have dropped to £145 million compared with £634 million for the previous year. The company added that conditions in many of its key markets are likely to worsen still.The company has seen a remarkable slowdown in its operations in the UK and the US, where the housing markets have taken a tumble last year.During this financial year, the company has announced that it would make 7,100 job cuts with an additional set of 600 cuts in the next financial year.The company said that it had no plans to raise more funds or go to their bankers for loan covenants renegotiation. However, it admitted that these are practical options if conditions remain difficult.Wolseley is the world's largest distributor of heating and plumbing products. It is also a leading ...
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Plumb Merchants Sales Down

Wolseley, the largest building materials merchant, known for its plumb centre and build centre trade counters has seen slowing performance due to the downturn in the UKs housing market.Known by virtually all UK plumbers and heating engineers, Wolseley has reported trading profits were down 28% in the past 11 months. The company warned that things can get worse.The company not only suffers from the slowdown in plumbing and heating jobs in the UK, but also from a major exposure to the US market. Wolseley normally makes around half its profits in the US, which has seen a sharp downturn of property prices and building activity.The company said it also had to reduce its staff worldwide by 6,000 since August 2007. The company, which operates under several merchant names such as Plumb Centre, Build Centre, has also called off its final dividend to cut costs.Chip Hornsby, Chief Executive said: “The deterioration in some of our key markets continues and it is likely that conditions will g ...
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