HEATING and plumbing merchant Wolseley warned of further job cuts as profits tumbled by almost 90%.
The Plumb Center and Build Center owner also said “extremely challenging” conditions were set to linger until early next year.
Wolseley, which has operations in Huddersfield and Brighouse, has been hit by housing slumps on both sides of the Atlantic, but now faces weakening commercial and industrial markets as the recession bites.
Pre-tax profits fell by 88% to £72m during the nine months to April 30.
Chief executive Chip Hornsby said: “Recent trading has proved extremely challenging and we continue to anticipate this will be the case until at least early 2010.”
Wolseley has axed more than 13,700 jobs since August last year to cut costs in the bleak conditions. The cull included more than 2,800 jobs in the UK and Ireland.
Its latest UK cuts involve the closure of four distribution centres with the loss of 270 jobs.
Wolseley shored up its finances with a £1bn fundraising in March, which helped reduce net debt to £1.53bn. It has also found a joint venture partner for its US building materials arm, in which it retains a 49% stake.
Mr Hornsby hopes these moves will put the group on a firmer footing to benefit from an eventual recovery – as well as gaining from a return to health of the US operation – but meanwhile conditions remain bleak.
All of its European operations have seen declining activity in the three months to the end of April, but the UK and Ireland and Nordic markets have been particularly hard hit.
Its UK and Irish business suffered from faltering repair and maintenance business and softening commercial and industrial work. Revenues were down 15% over the nine months to April 30, with trading profits 75% below the previous year.
Wolseley said further job losses were likely as the group continues to drive down costs. It expects to make annual savings of £511m through the cutbacks, although it has run up one-off costs of £336m so far.
