Stock Building Supply Buys K& A Lumber
Wolseley Acquires Five More Distributors
Wolseley Optimistic of Progress Made in U.S.
Ferguson Buys Endries International
Wolseley plc, London, group revenues increased more than 26% to $11.85 billion with trading profit up nearly 22% to $677.5 million, with the U.S. accounting for 59.3% of the revenues and 61.7% of the trading profit. The Group saw organic growth of 12.2%.
Wolseley’s North American companies performed strongly, with reported revenues up more than 40% and trading profit up 39%.
Wolseley’s U.S. plumbing and heating business, Ferguson, had overall sales growth of 37.8% to $4,530.5 million and organic growth of 27%. Profit growth was 29.5%. Ferguson’s total branch numbers increased by 156 during the first half to 1,097 locations.
Stock Building Supply reported revenues up 27.2% at $2.5 billion (2005: $1.96 billion) with trading profit up 51.5% to $157.3 million. Organic revenue growth was 7.9%, reflecting some commodity price deflation in lumber and structural panels.
In Canada, the construction and housing markets remained strong with the buoyant energy sector in Western Canada helping sales in the industrial and commercial sector. Revenue increased by 14.9% in Canada. More than 11% of the growth was organic. Profit grew by 4.4%.
Wolseley outlined highlights from the first half:
Record first half results achieved, despite generally flat European markets and significant investment in the business to position Wolseley for continued growth.
Increased diversity of the business as the Group has expanded into distribution of electrical products and insulation materials, entered the Belgian market and increased its presence in installed services in the U.S.