Mixed result for Wolseley
Wolseley, the world’s largest distributor of plumbing and heating products, has announced its figures for the 2015/2016 business year, with big regional variations.
Corporate turnover amounted to GBP 14.43 bn (EUR 16.63 bn) and profits stood at GBP 917 m (EUR 1.06 bn).
In the USA a turnover of GBP 9.46 bn (EUR 10.90 bn) was made, an increase of 6.3% compared with last year. In the UK the figure was GBP 2.00 bn (EUR 2.31 bn), 17.8% down. In Scandinavia the figure was GBP 1.88 bn (EUR 2.17 bn), 17.6% down. Wolseley in Canada and Central Europe made a turnover of GBP 1.10 bn (EUR 1.27 bn), which was a 0.2% drop.
The drops in turnover in the United Kingdom and the Nordic countries naturally triggered significant reactions from the management. In the UK 80 branches are being closed as well as a central warehouse, causing the loss of 800 jobs. This gives rise to restructuring costs of GBP 100 m (EUR 115 m). In 2 – 3 years this operation should be completed and afterwards annual cost savings of GBP 25 – 30 m (EUR 29 – 35 m) are expected.
In addition the Nordic countries will be closely scrutinized in order to be able to take appropriate measures.