17th Nov 2005 12:00
Wolseley PLC17 November 2005 NEWS RELEASE17 November 2005 Wolseley plc AGM Statement Wolseley plc, the world's largest specialist trade distributor of plumbing andheating products to professional contractors and a leading supplier of buildingmaterials, is holding its Annual General Meeting today at 12 noon, Haberdasher'sHall, 18 West Smithfield St, London, EC1A 9HQ. At the meeting, John Whybrow, Chairman, will make the following comments toshareholders: "There has been no significant change in the market conditions affecting theGroup's businesses since the Preliminary results announcement for the year ended31 July 2005, issued on 26 September 2005. The Group's US businesses have made an excellent start to the year and continueto achieve strong organic growth. The housing market remains strong although thenumber of housing starts may reduce as a result of higher interest rates. Thepositive repairs, maintenance and improvement ("RMI") market is expected tocontinue and the robust US economy should present further opportunities fororganic growth. The improvement in the industrial and commercial sectors isexpected to continue. In the US Building Materials business lumber andstructural panel prices have softened since the year end, as anticipated. In Canada, the overall environment is expected to remain positive although thenew residential housing market may fall slightly from recent high levels. Grossmargins continue to be affected by competitive pricing pressure. The UK business continues to outperform the market. As expected, the rate oforganic sales growth in the year to date has been more modest than the secondhalf of the prior year and the lower trading margin reflects the factorspreviously announced relating to additional pension and restructuring costs andthe lower margin of Brooks. In view of continued consumer caution, the year islikely to prove more challenging than the prior year. Continued benefits areexpected from government spending in social housing, health and education. In France, the RMI market remains low growth and competitive. Wolseley'soperations in the rest of continental Europe are expected to continue thegenerally good progress achieved in the previous financial year, despite marketswhich are likely to remain broadly flat. The Group has already invested £418 million this financial year to make 15 acquisitions across both Europe and the US, against the annual acquisition target spend of £250 million. These 15 acquisitions are expected to addapproximately £671 million to group turnover in a full year. The recent acquisitions of Encon and William Wilson have expanded the product range in insulation and electrical supplies and will provide further opportunities for growth in the UK market. Investment in infrastructure continues in order to enhance the Group'soperational performance, achieve synergies and leverage its internationalstrengths. There are a number of business improvement initiatives in placerelating to supply chain, sourcing and procurement that should deliverincreasing benefits to the bottom line. The Group will continue to pursue itsobjective of achieving, on average, double-digit sales and profit improvementsthrough a combination of organic growth and acquisitions, in new and existingcountries. The Board remains optimistic about the progress the Group is likely to achievein the current financial year driven by a strong performance in the USA and thehigher levels of recent acquisition spend. On 26 September 2005 we announced that Charlie Banks will be retiring fromWolseley on 31 July 2006 and that Chip Hornsby will be succeeding him as ChiefExecutive Officer. I would like to take this opportunity to express the Board'sgratitude to Charlie as this is his last Annual General Meeting as a directorand I hope that you will join with me in wishing him a long and happyretirement." In accordance with normal practice, Wolseley plc will be issuing a more detailedpre-close period trading update on 23 January 2006. ENQUIRIES: Investors/Analysts: Guy Stainer 0118 929 8744Head of Investor Relations 07739 778 187 Press:Penny Studholme 0118 929 8886Director of Corporate Communications Brunswick 020 7404 5959 Andrew FenwickDeborah Fairbrass Certain statements included in this announcement may be forward-looking and mayinvolve risks, assumptions and uncertainties that could cause actual results todiffer materially from those expressed or implied by the forward lookingstatements. Forward-looking statements include, without limitation, projectionsrelating to results of operations and financial conditions and the Company'splans and objectives for future operations including, without limitation,discussions of the Company's business and financial plans, expected futurerevenues and expenditures, investments and disposals, risks associated withchanges in economic conditions, the strength of the plumbing and heating andbuilding materials market in North America and Europe, fluctuations in productprices and changes in exchange and interest rates. All forward-lookingstatements in this respect are based upon information known to the Company onthe date of this announcement. The Company undertakes no obligation to publiclyupdate or revise any forward-looking statement, whether as a result of newinformation, future events or otherwise. It is not reasonably possible toitemise all of the many factors and events that could cause the Company'sforward-looking statements to be incorrect or that could otherwise have amaterial adverse effect on the future operations or results of the Company. Notes to Editors Wolseley plc is the world's largest specialist trade distributor of plumbing andheating products and a leading supplier of building materials to professionalcontractors in North America, the UK and Continental Europe. Group sales for theyear ended 31 July 2005 were approximately £11.3 billion and operating profit,before goodwill, was £721 million. Wolseley has around 60,000 employeesoperating in 14 countries namely: UK, USA, France, Canada, Ireland, Italy, TheNetherlands, Switzerland, Austria, Czech Republic, Hungary, Belgium, Luxembourgand Denmark. Wolseley is listed on the London and New York Stock Exchanges (LSE:WOS.L, NYSE: WOS) and is in the FTSE 100 index of listed companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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