European distributor Wolseley plc reported sales for the fiscal first quarter ended Oct. 31, 2012, of £3.3 billion (US$5.4 billion), an increase of 0.9 percent over the same period a year ago. Organic sales increased 2.1 percent. Trading profit increased 7.6 percent to £198 million (US$318.7 million).
Download a Free Chapter:
The Little Black Book of Strategic Planning for Distributors
Submit your email address below to receive a chapter of Brent Grover's new book. When you submit your email you will be signed up to receive weekly distribution news updates.
"In the current macroeconomic environment we are working hard to protect gross margins and to drive further operating efficiencies to protect profitability. Cash generation is a key focus and the strength of our balance sheet provides opportunities to invest selectively where we can generate good returns,” Ian Meakins, chief executive, said.
U.S. sales were £1.7 billion (US$2.7 billion), an increase of 9.6 percent year-over-year. Organic sales increased 7.1 percent. Trading profit increased 23 percent to £122 million (US$196.4 million). Wolseley completed two bolt-on acquisitions during the period: Davis and Warshow, a Blended Branches business in New York, and Power Equipment Direct, an online retailer of generators and power equipment. The businesses had combined annual revenue and trading profit of £125 million (US$201 million) and £10 million (US$16.1 million), respectively.
Sales in Canada were £247 million (US$397.6 million), an increase of 4.8 percent over the same period a year ago. Organic sales increased 3.1 percent. Trading profit increased 5.9 percent to £18 million (US$29 million).
In the UK, sales were £428 million (US$688.9 million), flat to the prior year. Organic sales decreased 0.3 percent. Trading profit increased 4 percent to £24 million (US$38.6 million).
In the Nordic region, sales were £532 million (US$856.3 million), a 10.1 percent decrease from the same period a year ago. Organic sales decreased 4.3 percent. Trading profit decreased 10.5 percent to £34 million (US$54.7 million).
Sales in France were £250 million (US$402.4 million), a 17.1 percent decline from the same period a year ago. Organic sales decreased 8.2 percent. Wolseley reported a £1 million (US$1.6) trading loss in the quarter, compared to a trading profit of £3 million (US$4.8 million) in the first quarter of fiscal 2011.
Sales in Central Europe were £190 million (US$305.8 million), a 7.8 percent decrease from the same period a year ago. Organic sales increased 1.3 percent. Trading profit decreased 7.1 percent to £13 million (US$20.9 million).
Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit www.mdm.com/reprints. MDM welcomes inbound links from your site. Please cite Modern Distribution Management.
Download the Top 40 Industrial Distributor List Free
Get the Top 40 Industrial Distributors list in PDF, and you will be signed up below to receive MDM Update, your free daily distribution news update by email.