HVAC Breaking News

June 6, 2008: Ferguson Closes 75 Branches

June 6, 2008
/ Print / Reprints /
ShareMore
/ Text Size+

NEWPORT NEWS, Va. - Wolseley plc issued its Interim Management Statement for the third quarter announcing the closing of 75 Ferguson branches in the United States, reducing staff by approximately 200 employees. Ferguson is also consolidating 15 locations in Canada, further reducing its staff by approximately another 50 people. According to the distributor, further cost reduction and business improvement actions will be taken in North America and Europe before July 31 of this year.

The company is continuing its rigorous focus on cost reduction and cash flow enhancement looking for further improvements in working capital ratios. According to Wolseley, the U.S. housing and repairs, maintenance, and improvement markets have continued to soften but U.S. commercial and industrial markets have held up well.

“Given the continuing tough market conditions, our response has been to take further action to lower the cost base and improve cash flow, while continuing to pursue our longer term strategic aims,” said Chip Hornsby, group chief executive of Wolseley. “The cost reduction actions outlined today will enable us to restructure the business further, so that we are better positioned for the challenges ahead.”

Despite the closures, overall group revenue was up 2 percent. Ferguson in North America continued to gain market share and for the nine months ended April 30, 2008, it had achieved local currency revenue growth of 1 percent due to acquisitions.

Stock Building Supply continued to be affected by the U.S. housing slow-down and saw revenue fall 25 percent with additional pressure on gross margins. The trading loss for the nine-month period was $158 million.

Wolseley Canada achieved 2 percent constant currency revenue growth, although trading profit was 15 percent lower, due to the previously announced one-off branch closure costs.

According to the company, although the U.S. commercial and industrial market, which accounts for the majority of Ferguson’s business, is likely to remain stable into the next financial year, the group’s rigorous focus on cost reduction and cash maximization will continue.

For more information, visit www.wolseley.com.

Publication date: 06/02/2008

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con