Stock Building Supply posts further losses
Wolseley, the U.K.-based global building products supplier, reported its year-end results today, posting revenues of 16.5 billion pounds (US$30.5 billion) for the financial year ending July 31, 2008. Group operating profit was US$556.5 million.
Breaking out numbers for its North American division -- including Stock Building Supply and Ferguson – Wolseley reported revenues were down 7.3 percent and profits fell 37.4 percent.
Annual revenues for the company’s Building Supply were $3.47 billion, down 24.5 percent from $4.59 billion in 2007. This reflects a 21 percent decline in same-sales stores. Stock posted a loss of $246 million for fiscal 2008, compared with a profit of $86 million the previous year. The 2008 losses include $13 million in restructuring and severance costs related to the closure of 36 branches and a headcount reduction of 3,150.
Plumbing and HVAC distributor Ferguson was the better performer of Wolseley’s two U.S. businesses, posting sales of $11.2 billion, a 1.3 percent gain over revenues of $11.0 billion in 2007. Net income was $794 million, essentially flat from the year before.
In a prepared statement, Wolseley said it was operating within its banking covenants and did not fo