Wolseley Suffers From Eurozone Woes

LONDON -- Shares in Wolseley  (LSE: WOS  ) dipped 3% this morning, shedding over £1, as it released its third-quarter figures. 

The fall comes off the back of a decline in its European business, despite the the world's No. 1 distributor of heating and plumbing products seeing good growth in both the U.K. and the U.S.

Like-for-like revenue declined by 7.3% in the Nordic region, 9.2% in France and 4.6% across Central Europe, as construction markets and consumer sentiment remained very weak. However, the U.K. saw climbs of 5.2%, the U.S. 8.3%, while Canada remained flat.

Chief executive Ian Meakins commented:

Wolseley continued to make decent progress in the third quarter... We held our gross margin overall and controlled costs to generate 7.9% trading profit growth in the ongoing business.

We will continue to pursue operating efficiencies and remain focused on customer service, gaining market share and protecting our gross margins. We will manage the cost base of each of our businesses commensurate with market conditions while executing our growth initiatives in the more robust markets.

Across the group, revenue rose 6% while like-for-like revenue increased 2.4%, seeing a trading profit of £150 million -- 7.9% ahead of last year.

But this wasn't enough for investors this morning, as many sold their Wolseley shares in early trade amid fears of the company's heavy exposure to the turbulent eurozone.

If you are looking for alternative investment opportunities within the FTSE 100, though, then this exclusive wealth report reviews five particularly attractive possibilities.

All five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!

Just click here for the exclusive free report, but don't delay as all Fool reports are available for a limited time only.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2471502, ~/Articles/ArticleHandler.aspx, 12/21/2014 11:18:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement