Where will this lead to?

Got in at 650p toearly. US HOUSING is the key. First in first out.

I have been keeping an eye on sp but not yet ready to commit. May be more bearish news to come out of US re housing/construction. Board very clever to take the opportunity to have a rights issue near to the top of the market to help pay for the heavy acquisition programme over last couple of years or so. A quality outfit but, they may go lower yet. sp 587p

I agree, the sp will get lower by the end of 2008...
the climb from 450p to 1450p took 3 years but the decline from 1300p to 600p took ONLY 9 months!

Wolseley was the FTSE 100s heaviest faller this morning after Goldman Sachs and ABN Amro advised investors to sell shares in the building supplies group.

Goldman Sachs downgraded it to sell from neutral, cutting its target price to 565p from 775p, saying it expected Wolseleys earnings to decline as US and European construction markets weaken.

ABN Amro also cut Wolseley to sell, from a previous rating of hold, and lowered its price target to 530p from 630p. The broker said it expects Wolseley to report a deterioration in trading when it issues interim results on Monday.

Citing weaker lumber prices, expected weaker UK new housing demand, slower growth in Scandinavia and higher Swedish interest rates, ABN Amro cut its earnings per share forecast for the group by 11.8% for 2008 and 21.9% for 2009.

Goldman Sachs said it expects US housing starts to fall below 1m. It cut its earnings per share estimates for Wolseley by 6% for 2008 and 31% for 2009.

Wolseley turned lower Monday as it reported weaker full year profits, prompting broker Landsbanki to start coverage of the plumbing supplies group with a hold rating and 500p price target.

Profit before tax and amortisation and impairment of acquired intangibles for the half year fell 29% to 233m on revenue up 2% to 8.03bn, pretty much as expected.

The firm said the results reflected increasingly difficult trading conditions across many businesses and the continuing action to significantly reduce the group's cost base and maximise cash flow.

Things arent expected to get any easier, with the company predicting conditions will become even more challenging over the next few months.

The broker is forecasting earnings per share of 80.6p and pre-tax profit of 550m, assuming the dollar doesnt tumble significantly by the end of July

In the short-term, we remain very focused on maximising cash flow, reducing costs and growing market share, said chief executive Chip Hornsby.

We are confident in the long term fundamentals of our markets and will emerge from this current downturn as a stronger organization with an excellent platform for future growth.

The group said it is fully in compliance with its borrowing covenants at the end of January and is confident that this will remain the case.

Closed at 483p. I feel WOS will fall to 350p soon.

or perhaps go to 550p sooner

Going down best short around.

tipton11 - 18 Mar 2008 16:04 - 10 of 13
or perhaps go to 550p sooner

MoneyAM
Plumbing and building materials distributor Wolseley announced trading profits down 23% in the nine months to April 30th and said it expected challenging trading conditions to continue in many of its markets, as it had anticipated.

While not giving any figures, Wolseley said group trading profit in the period fell 23% against the same period last year and pretax profit before amortisation and impairment of intangibles was 30% lower, against a 2% rise in revenue.

The group said trading in the three months to April 30th was broadly in line with expected market conditions that it flagged in its half-year results.

The US housing and repairs, maintenance and improvement (RMI) markets continued to soften, but US commercial and industrial markets held up well.

In Europe, there has been a more pronounced slowdown in the United Kingdom over recent weeks and many other European markets continue to soften.

The company said it took restructuring decisions that would result in one-off costs of about 50m in Q4 and annual savings going forward of about 70m.

'Challenging conditions in many markets are expected to continue, although the US commercial and industrial market, which accounts for the majority of Ferguson's business, is likely to remain stable into the next financial year,' Wolseley said in a trading statement.

'The group's rigorous focus on cost reduction and cash maximisation will continue.'

Wolseley said its Ferguson business in North America continued to gain market share and achieved local currency revenue growth of 1% due to acquisitions in the nine months to April 30th, although organic revenue declined by 3% and trading profit fell 1% than at the same time last year.

Stock Building Supply continued to be affected by the US housing slowdown and saw revenue fall 25% with additional pressure on gross margins.

The trading loss for the nine-month period was $158m.

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

In Europe, revenue in Wolseley UK, which includes Ireland, increased 3% in the nine months ended April 30th, and trading profit was 6% lower.

Underlying profit in the UK, excluding Ireland, was slightly higher. However, Wolseley UK experienced a more challenging April as the market slowed significantly. In France, the business environment has slowed further. Wolseley France increased local currency revenue 3% in the nine month period and trading profit was 18% lower.

The planned cost reduction measures include the closure of 75 branches and headcount reductions of 200 at Ferguson and the closure or consolidation of 15 locations in Canada, with an associated headcount reduction of around 50 people. Further cost reduction and business improvement actions will be taken in North America and Europe before July 31st, the group said.

Some analysts have said they believe a rights issue or disposal programme may be necessary to reduce Wolseley's net debt, which stood at 2.9bn at the end of January.

Wolseley said it had curtailed capital expenditure plans and now expects total capital spending for the year to July 31st to be 320m to 330m. At April 30th, net debt was about 2,875m, 19m lower than at January 31st, after an adverse exchange impact of 83m. Gearing reduced from 84% at January 31st to 81% at April 30th.

The company said it continues to adopt a cautious approach to acquisitions and had not completed further acquisitions since its half-year results announcement



Guscavalier comment:
3rd paragraph from the end could well prove a continued drag on sp. Rights issue probably more likely than selling businesses in current climate. sp 529p. N.B. re UK, business slowed significantly in April.

410p now...looking nearer to 350p which is my target.

Wolseley's financial structure is currently in jeopardy due to its exposure in the US and its banking covenants would be breached. Highly in debt.
SELL down to 270p. Now 388p.

350p and more further downtrend to go to 270p.

315p...great stuff.

used to so classy. but i had bad experience there early last year so sold the shares.... all of them!

WOS will fall to 150p soon.

in this instance, i could certainly not recommend investing in the building industry, though WOS could easily (even likely?) have a very sharp bounce and present a good trading opportunity

but all now falling away and have gone short this afternoon.
possible support at 280

a little early to tell, but the 280 support looks to have given way ..... certainly been a good short call and added to that position earlier today

I think Elder likes to see support / resistant levels like a barbed wire fence... they are elastic and can bend beyond the anticipated point and spring back up. Will be interesting to see where wos goes

an elastic barbed wire fence .... now there's something novel!

Possibly an oxy-moron or may be myself being the latter

having looked again at the chart, a break with any impetus through 270 would be very ominous as that is the low point looking back for the last 5 years

LONDON, Nov 18 (Reuters) - Wolseley plc Chief Executive Chip Hornsby and Chief Financial Officer Stephen P Webster told reporters on a conference call:

* Seen rapid deterioration in UK market

* Will also pursue actions to reduce debt

* Sees US commercial market continuing to decline into 09

* Combination of exchange rates and earnings fall could threaten

covenants

* Is cutting UK stores, headcount by 14/15 percent

* CFO says lost 18 percent of headcount overall

* CFO says total heacount cuts are 15,000 since August 1 2007

a good call backed with money for a change

was contemplating banking my profit but on the basis of ....... "CEO also predicted the company's US commercial business, currently a key revenue driver, would see further declines in 2009", i see no hurry

though i should perhaps have taken my profit this morning, i have read again the stuff to be found on NewsWatch and in all honesty, see this little bear squeeze or short position closing as another opportunity to short

took my own advice and sold another little batch at 291.25 .... overall avr = 300.64 ..... i still think there is plenty more downside even though sp now 279 mid

cynic i shorted last week at 317.
down thirty something yesterday up 20 something today, im happy. just dont let me know what todays low was, might spoil it for me.
todays low didnt happen.my plan is planned. hope it works but gotta be nimble in these markets so i'll now change it and play defence, yet again, and settle for a draw. so it did happen? thats my traders hat, as opposed to my investors which is why i much prefer the latter.
if i cant win then try not to lose. i'm still in there however.
fingers crossed
if i had shorted earlier/higher i would be braver.
regards
jkd
ps i'm also short bss. same/ similar scenario

shan't upset you then - lol!

more jolly news .......

Plumbing and building materials group Wolseley has refused to rule out the possibility that a rights issue will be required next year

I feel sorry for you guys who bought at 14 quid!
can only get better from here!?

not so ..... WOS has already predicted further downturn in 2009 and now a rights issue is clearly on the cards ..... further, if the 280 (chart) support is now truly broken, then there is no support at all as far as i can see

Make sure the connection parameters are set properly.Resistant level like a barbed wire fence... they are elastic and can bend beyond the anticipated point and spring back up. GREAT

have just locked in a useful profit just in case there is a sharp bounce ...... if there is, then i shall be looking to short again on monday

New article, click here

a good and interesting article, but i really cannot be enthusiastic about any markets at the moment

an exceptionally sharp bounce today without any news takes the price close to 25 dma ...... time to short again shortly?

LONDON (SHARECAST) - Taylor Wimpey has surged ahead on hopes a debt-for-equity deal for bondholders and banks may benefit shareholders.
Probably in sympathy cynic, tried a short from 302 stop loss 322

closed short at 291, rose on short squeeze due to better than expected housing stats {nationwide} according to independent

but starting to look like time to short again

have just done so at 307 .... sp has had a couple of strong days and took a peek at 25 dma and is now starting to fall away from it ...... housing is many many months from starting to recover either in US or UK

Don't forget interest rate decision today.

I guess if it is only upto 1% then markets will be disappointed but a huge rate cut could spark a big rally

if that happens, then it will be short-lived and may then well add to shorts ..... meanwhile IEC is on its way at last!

got my timing rather wrong on this one to put it mildly, but shall probably expose myself further after BoE pronouncement

I think wos is also like gsk a dollar play ie goes up with the dollar

cynic
i think i may have done too. stopped out of my short at breakeven today. buying when i should be selling? oh well better safe than sorry.
regards
jkd

actually i caught the falling knife and topped up (down?) at 338.5 which averages me out at 319 ...... contemplating whether or not to cash in the profit on the last batch, but at the mo, am inclined to be greedy!

went out to buy a sarnie and see i was not such a dope after all

cynic
well done to you.
regards
jkd

i noticed when i was thinking of buying (selling short) my second tranche that sp was just touching below 50 dma ..... now note that it has fallen back under 25 dma ...... next "proper" support looks to be around 275

have sold the more expensive 40% of holding at a decent profit and the balance is also now in the money ..... with Dow looking to be in for anothjer torrid day, 275 may well prove to be on the cards in the not too distant future

You still short these cynic?

perhaps a bit bravely, but yes as i cannot see the construction industry recovering for a good while yet

Looks like a solid short to me.

One of Winnies group of tipsters went short last week.

Think it was the top spreadbets outfit.

now heading south like a good boy! ..... shame i could not get my timing right, but now in profit

my target of 280, which could arguably be 260, now looking a def possibility in the near future

i banked my (decent) profit here a coupole of days ago, but sp now heading sharply south again ..... i suspect it is too dangerous to short WOS now (except with guaranteed stop), especially ahead of the trading update due later, presumably at or just before NY opens

Yes might end up like shopkeeper on million dollar trader!Does that mean you are now long ?

good gracious no ..... that would be close on suicidal ..... however, it just may be worth considering jumping in after the update at say 260 or a bit lower .... depends rather on how bad the numbers are

I suspect the market anticipates a rights issue, could try a long at the close pre numbers with guaranteed stop loss

glad it's with your money

just checked .... trading update is due on Monday

Wolseley Trading Statement





TIDMWOS

RNS Number : 2062M
Wolseley PLC
26 January 2009

?


NEWS RELEASE
26 January 2009




Wolseley plc
Pre Close Period Trading Statement for the five months ended
31 December 2008




Wolseley plc, the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials, today issues its regular trading statement for the five months ended
31 December 2008, prior to entering its close period. The half year results for
the six months ending 31 January 2009 are due to be announced on 23 March 2009.


Summary for five months ended 31 December 2008:


Overview
Further deterioration in Wolseley's general trading environment in November
and December due to unprecedented events in the global financial markets and
negative GDP trends.
Management's emphasis continues to be concentrated on actions to enhance
cash generation and reduce costs, with benefits coming through as planned.
Recent adverse movement in foreign exchange rates have negatively affected
the Group's overall net debt position. However, the Group's projections continue
to show covenant compliance at 31 January 2009.

Operating Highlights
Revenue up c.3%, down c.10% in constant currency.
Trading profit down c.45%, c.52% in constant currency.
Profit before tax, exceptional items and amortisation and impairment of
acquired intangibles down c.66%, c.75% in constant currency.
Net debt increased by 22% since 31 July 2008 to GBP3 billion principally
due to GBP557 million adverse effect of currency exchange. However, net debt is
expected to be lower at 31 January 2009 due to an expected working capital
inflow, but will be dependent on exchange rates at that date.
Excluding the effects of currency translation, the improvement in working
capital cash to cash days at 31 December 2008 compared to FY 2008 is in line
with the 10% improvement target for FY 2009.

Debt Reduction and Restructuring Actions
Previously announced actions to date initiated in the five months to 31
December 2008 have resulted in headcount reductions of 7,500, combined
exceptional restructuring charges of GBP208 million, and annualised cost savings
of GBP237 million.
Recent actions in the period to 31 December 2008 have resulted in
additional exceptional restructuring charges of around GBP39 million and
annualised savings of around GBP93 million.
Actions have been taken to mitigate the risk of further adverse effects on
net debt caused by the weakening of sterling against the euro.
An additional receivables funding arrangement in UK was implemented in the
period, which reduced net debt by GBP72 million.


Outlook
The Group expects macro economic conditions to deteriorate in the short
term, and until conditions stabilise Wolseley is unlikely to see any upturn in
its markets.
Until consumer confidence returns and availability of finance for customer
projects improves, the Group expects performance in North America to decline.
The Group also expects conditions in the UK to continue to deteriorate with
performance in Continental Europe also likely to remain under pressure as
consumer sentiment is further negatively affected by macro economic conditions.
Against the background of deteriorating trading conditions and volatile
financial markets, the Group will continue to concentrate its near term
operational actions on enhanced cash generation and cost reduction.
The Group will continue to evaluate all of the options and implement the
actions necessary to position the balance sheet appropriately for the medium
term.
The next few months will be critical in providing further evidence to
assess how the downturn may evolve.
The Group's objective is to position itself to be able to continue to
operate competitively, and maintain a level of investment over the medium term
that will ensure the business is well positioned to benefit when the economies
in which it operates stabilise and markets begin to recover.



Chip Hornsby, Chief Executive of Wolseley, said:


"We continue to act decisively and rapidly in response to the unprecedented
market conditions we face. Our attention and efforts remain resolutely focussed
on achieving compliance with our banking covenants, without losing sight that to
generate shareholder value we must seek to ensure the business is well
positioned to benefit when the markets in which we operate begin to recover. In
the meantime, and against this background of declining macro economic activity
we continue to implement the actions required to reduce cost and maximise
cash."
Overview


For the five months ended 31 December 2008, Wolseley continued to be affected by
the increased slowdown in most of the Group's markets.


Group revenue for the five months ended 31 December 2008 was up around 3%
compared to the corresponding period in the prior year. Trading profit was down
by around 45% primarily due to lower profitability in Stock Building Supply, DT
Group and Wolseley UK. In constant currency, revenue would have been around 10%
lower and trading profit 52% lower than the corresponding period in the prior
year.


Our objective remains to ensure the appropriate sizing of the cost base in line
with the deteriorating market environment, to drive strong cash flow and reduce
net debt. In particular, the Group has taken further action to mitigate the
adverse effects on the Group's overall debt position of the weakening of
sterling against the euro. The principal actions in the five months to 31
December 2008 are set out below:


1. Restructuring actions


Previously announced actions to date in the five months to 31 December 2008 have
resulted in headcount reductions of 7,500 combined exceptional restructuring
charges of GBP208 million in FY 2009, and annualised savings of GBP237 million.

Recent actions in the period to 31 December 2008 have resulted in additional
exceptional restructuring charges of around GBP39 million and annualised savings
of around GBP93 million.


2. Net debt and cashflow


Net debt increased by 22% since 31 July 2008 to GBP3 billion principally due to
GBP557 million adverse effect of currency exchange. Gearing was higher at 78.0%
compared with 73.5% at 31 July 2008. The Group has committed and undrawn banking
facilities available of over GBP1 billion as at 31 December 2008 and has no need
for additional facilities until after the year ended 31 July 2011.


In December, Wolseley UK entered into a receivables funding arrangement which
reduced net debt at 31 December by GBP72 million. The additional cost of
servicing this arrangement is expected to be around GBP4 million a year.


Given Wolseley's geographical diversity of operations between North America, the
UK and Continental Europe, the overall level of net debt is sensitive to
movements in exchange rates. At 31 December 2008, 14% of net debt was
denominated in dollars, 48% in euros and 38% in sterling. Since November,
sterling has weakened against the dollar and the euro and consequently the Group
has taken the following risk mitigation actions:


* The Group has recently entered into zero cost collar transactions with a total
value of just over EUR1.7 billion. These hedging transactions protect the Group
giving it an option to buy euros at a protective floor limit should sterling
weaken beyond this point. Of the EUR1.7 billion total, EUR800 million was hedged at
EUR1.05 and EUR900 million at EUR1.02.

* A further transaction to convert GBP200 million of euro denominated debt to
sterling was completed prior to 31 December 2008. This brings the cumulative
total of foreign currency debt converted to sterling since 31 July to
GBP300 million of US dollar denominated debt and GBP700 million of euro
denominated debt. The weakness of sterling has had a favourable translation
effect on trading profit of GBP40 million in the period.



Due principally to the unprecedented movement in currency exchange rates in the
last three months, the Group's covenant headroom at 31 January 2009 is likely to
be lower than we expected at the time of our interim management statement. The
final net debt position at that date should be lower than at 31 December 2008
due to an expected working capital inflow, although it will be dependent on
foreign exchange rates at 31 January 2009. The Group's projections continue to
show compliance with our banking covenants at 31 January 2009.


Excluding the effects of currency translation, the improvement in working
capital cash to cash days at 31 December 2008 compared to FY 2008 is in line
with the 10% improvement target for FY 2009. Operating cash flow for the five
months ended 31 December was down on the equivalent period in the prior
year primarily as a result of a lower level of trading profit and the cash cost
of restructuring actions.

Capital expenditure in the five months was lower than the corresponding period
last year, and is in line with a targeted spend of around GBP180 million for the
full year (FY 2008: GBP317 million).


Further details of market conditions and financial performance in each of the
Group's businesses are set out below:


North America
In North America, revenue in the five months ended 31 December 2008 in sterling,
was up 6% compared to the corresponding period in the prior year. Trading profit
was down by around 16% reflecting the loss reported by Stock in the period. In
constant currency, revenue and trading profit would have been around 11% and 30%
lower than the corresponding period in the prior year.


The Group's US results have continued to be affected by the ongoing decline in
US housing starts and falling consumer confidence.


Encouragingly, Ferguson continued to outperform the overall market in the period
despite encountering increasingly challenging new residential and RMI markets.
However, revenue in US dollars for the five months ended 31 December 2008 was
down 10% and underlying trading profit excluding property profits was down
around 13%. During the five months to 31 December 2008 Ferguson benefited from
the stability of the commercial and industrial market, although during December
there were signs of certain segments of the market weakening due to continued
scarcity of finance for projects.
Stock's revenue and trading profit in US dollars have been impacted by the
continuing slowdown in the new residential market. Annualised housing starts for
December have now fallen to 550,000 units, a fall of 45% on the equivalent
period in the prior year. Lumber prices also continue to decline to
unprecedented levels and recently fell below $200. Stock's revenue was down by
around 23% and the trading loss for the five months ended 31 December 2008 was
around $110 million (2007: loss of around $50 million). The restructuring
actions announced on 23 October 2008 have now been completed apart from two
locations which will be closed in the next few weeks.
Despite slowing markets, the Canadian business has achieved an increase in
organic sales growth of around 4% in the five months to 31 December 2008. Local
currency trading profit was slightly down due to a lower gross margin.
Europe
Revenue in sterling for Europe was broadly flat in the five months ended 31
December 2008, whilst trading profit was down by around 60% mainly as a result
of the lower level of activity in all regions. In constant currency, revenue
and trading profit would have been around 10% and 65% lower than the
corresponding period in the prior year.


Revenue for the UK and Ireland decreased by about 12% with trading profit down
by around 80%. As anticipated there has been a further deterioration in the UK
market activity in recent weeks. The previously announced restructuring actions
are well under way and are on track to deliver annualised benefits of GBP80
million and a headcount reduction of 2,000 in the UK.


Macro economic conditions in France continued to weaken which has adversely
affected consumer sentiment. Reported revenue in euros for the five months
ended 31 December 2008 was around 4% lower with trading profit down by over 60%.
The January profit is expected to show a more favourable trend as the effect of
the phasing of accounting estimates, referred to in the IMS in November 2008 of
EUR8 million, reverses in the month.


For the five months ended 31 December 2008, DT Group reported revenue, in local
currency down around 13% with trading profit down around 40%. The markets for
building materials continued to deteriorate in all four Nordic countries during
November and December.


Revenue in Central and Eastern Europe, in local currency was flat with trading
profit down around 85%. This was primarily as a result of competitive pressure
on margins, and an additional impairment of GBP2 million in respect of the
deferral, announced in September, of an IT project.


Outlook


The Group expects macro economic conditions to deteriorate in the short term,
and until conditions stabilise Wolseley is unlikely to see any upturn in its
markets. Until consumer confidence returns and availability of finance for
customer projects improves, the Group expects performance in North America to
decline. The Group also expects conditions in the UK to continue to deteriorate
with performance in Continental Europe also likely to remain under pressure as
consumer sentiment is further negatively affected by macro economic conditions.
Against the background of deteriorating trading conditions and volatile
financial markets, the Group will continue to concentrate its near term
operational actions on enhanced cash generation and cost reduction.


The Group will continue to evaluate all of the options and implement the actions
necessary to position the balance sheet appropriately for the medium term. The
next few months will be critical in providing further evidence to assess how the
downturn may evolve. The Group's objective is to position itself to be able to
continue to operate competitively, and maintain a level of investment over the
medium term that will ensure the business is well positioned to benefit when the
economies in which it operates stabilise and markets begin to recover.




There will be an analyst and investor meeting at 0930 (UK time) today at UBS, 1
Finsbury Avenue, London, EC2M 2PP. The meeting can also be accessed by
conference call:


+------------------------------------+------------------------------------+
| UK dial-in number: | +44 (0)20 7138 0835 |
+------------------------------------+------------------------------------+
| US dial-in number: | +1 718 354 1172 |
| | |
+------------------------------------+------------------------------------+
Slides relating to the call will be available on www.wolseley.com.
The call will be recorded and available on www.wolseley.com after the event

falco .... sure hope you don't go long .... for myself, i sold out too early, but it was a decent profit so should not complain

No didn't bother thankfully,too many knife scars on my hands as it is !

by friday, it was too dangerous to call either way

in fact, you may want to consider a short on WPP ..... i am amazed by that stock's current resilience as advertising is the first port of call to save costs .... further, a large slice of WPP's revenue is generated by US car makers, and we all know where they are heading!

Currently 181.7 and in auction.

This is a disastrous trading statement...WOS will go below 100p. No doubt about that.

Wolseley reveals big profits slump - MoneyAM


Plumbing supplies group Wolseley has announced a 45% drop in trading profit.

In its trading statement for the five months to 31 December, Wolseley highlighted further deterioration in its trading environment in November and December 'due to unprecedented events in the global financial markets and negative GDP trends'.

Revenue is up 3% but down 10% in constant currency terms. Trading profit is down 45%, 52% in constant currency.

Profit before tax, exceptional items and amortisation and impairment of acquired intangibles is down 66%, or 75% in constant currency.

Net debt increased by 22% since 31 July 2008 to 3 billion principally due to a 557 million effect of currency exchange. Wolseley says net debt is expected to be lower at 31 January due to an expected working capital inflow 'but will be dependent on exchange rates at that date'.

The group says it expects macro-economic conditions to deteriorate in the short term and is unlikely to see any upturn in its markets until conditions stabilise.

Chief executive Chip Hornsby said 'Our attention and efforts remain resolutely focused on achieving compliance with our banking covenants, without losing sight that to generate shareholder value we must seek to ensure the business is well positioned to benefit when the markets in which we operate begin to recover.

'In the meantime, and against this background of declining macro-economic activity, we continue to implement the actions required to reduce cost and maximise cash.'

sp continues to rumble south ..... i have looked back at the charts for 10 years and as far as i can see, once 300 was broken, sp was in totally uncharted waters .... i very much doubt that WOS will fold, but i have no idea at what level support will be found

Yes it doesn't look good - currently in auction - I closed my short last week - but I'm seriously thinking of opening a new one.

i too re-shorted on 27/1 and then doubled that up on 29/1

I'm also short on WOS, in unchartered water at the moment but with the value of Sterling slipping further and further the companies debt is expanding adding to the other forces. If 150 is taken out quickly then will hold for 125, I think 25 point increments are probally wise, anyone else got feelings on stop loss etc.?

where have you been for the last few days!?
now appreciably stronger than it was a week ago against both and $

Indeed but I don't see this lasting, I think we'll soon be seeing it go the other way.

Cynic - I think the pound is down @2.5% against the dollar over the past week?

perhaps my timescale is wrong, but was certainly down to about $1.35 (now $1.41) and 1.03 (now 1.11) within the very very recent past

on the basis that there may be quite a sharp bounce, i decided to bank what finished as a pretty modest profit, but a profit nevertheless

bears have been giving WOS a real pasting over the last few days, but the chickens have come home to roost (very Cantona!)

out at 1215 with a modest profit

to make a very bad pun, WOS (which i bought back into yesterday morning) are roofing it yet again ....... such has been the staggering rise and pace thereof, i strongly suspect a very heavy bear squeeze, albeit that the outlook is certainly more rosy than it was

bugger - well sort of anyway ...... took my tasty profit prematurely at 1454 and sp moving smartly ahead again

I am seeing a sp that is like a ski-slope.
- However, in "shares" they say:-
".....Hornsby stumped up 50,400 on 16 March for 25,000 shares at 202p ten days after the company announced half-year results in which it unveiled a 1 billion cash call via a placing and rights issue to strengthen the companys finances. It was a good call as the shares subsequently rallied as Wolseley became a back from the brink stock and a debt-relief trade. Hornsbys investment has since generated a 486% profit with the investment now valued just under 246,000....."

+Now there may have been a 5:1 CONsolidation, but the way I see the relative sp movement, Ch Exec Hornsby is staring at a massive loss. Furthermore the sp never reached 2 as "Shares" states . . . . .

-Anyone care to explain it to me?

Wolseley: CEO Chip Hornsby Steps Down, Names Ian Meakins New CEO





LONDON -(Dow Jones)-

Wolseley PLC (WOS.LN), said Tuesday that Chip Hornsby has stepped down as Group Chief Executive with immediate effect.

MAIN FACTS:

-Ian Meakins will succeed Chip as Group Chief Executive with effect from Jul. 13.

one of these days, i just might getting my timing right for this stock!
however, it is certainly worth putting on your watchlist, for there are now persistent reports of uk housing markets starting to revive.
however, as so so often, it is good news in that area that is needed from usa to really kick-start this one

showed a useful profit, which i have now banked as sp currently struggling to break out ...... shall keep watching

glad i got back in at 1138 - i.e. 1130 was breakout point as previously mentioned.
sp and volume have gone balistic today
not quite sure where next obvious resistance is, but no doubt PTH could tell us
1275 could cause a pause followed by 1450 is my guess

thought the market would tumble sharply this morning and took profits too quickly at 1185 ..... never mind; it's money in the bank

this share is the bane of my life! ...... i can never ever get the timing right, but if anyone followed my advice of 14th july (and didn't take profits as i did!) they would now be sitting on a very healthy profit of about 3.00 a share = >25%, but would now suggest at least putting in quite a close stop at the current level, or even banking at least part of the profit

of course a certain KB told me (several times) that i was talking total and utter bollocks about considering buying housebuilders shares + WOS about a week back on BDEV thread ......
however, it's well worth looking at that thread and bringing up the share comparative chart i posted there .....
perhaps KB has choked on the large slice of crow pie she should now be treating herself to, for she has certainly gone very quiet indeed - what a surprise!

Nomura downgrade looks like a shorting opportunity at present.

good thought ..... sure glad i didn't jump back in, which certainly crossed my mind

Currently 1407 +98

Wolseley Swings To Fiscal Year Loss And Warns Its Mkts Will Stay Weak





By Steve McGrath

Of DOW JONES NEWSWIRES

LONDON -(Dow Jones)- U.K.-based building supplier Wolseley PLC (WOS.LN) Monday said it wouldn't pay a final dividend after it swung to a fiscal year loss and warned that conditions in its markets are set to remain challenging.

It said that while new residential markets continue to stabilize, commercial and industrial markets will decline at a faster rate. It will continue to cut costs as a result, and expects profit trends to improve in the second half of its new fiscal year due to the cost reduction measures it has already taken. It expects the measures already made to boost its fiscal 2010 result by GBP233 million.

"Market trends since the July trading update continue to support the Groups view that in the short term market conditions will remain challenging driven by tight credit conditions, high levels of foreclosures and rising unemployment rates," the company said.

Wolseley, which makes a large proportion of its revenue in North America, has been hard hit by the downturn in construction markets across North America and Europe. It has sold some operations, notably in Eastern Europe, and shed thousands of jobs as it cuts costs in response to the downturn. It closed 653 branches and shed 10,364 staff during the last fiscal year alone.

Its net loss in year to July 31, 2009, was GBP1.17 billion, compared with a GBP74 million profit, even though revenue fell only to GBP14.44 billion, from GBP14.81 billion. Revenue was helped by sterling's weakness against the dollar and euro, which boost revenue earned abroad in sterling terms, while profits were hit by the costs of shedding staff and other cost cutting.

It swung to a loss from continuing operations of GBP732 million, from a profit of GBP242 million. This figure is closely watched as an indication of future profitability.

Still, it managed to cut its net debt to GBP959 million at the end of the fiscal year, compared with GBP1.26 billion a year earlier. It completed a GBP1 billion capital raising in April to cut debt and working capital inflow was GBP846 million during the fiscal year.

in 1345

Short term chart taken out of context, but never the less a big rise this week and - I think trading statement due around the 21st.

NEWS RELEASE

23 February 2010


WOLSELEY EXPECTS GROUP TRADING PROFIT BEFORE EXCEPTIONAL ITEMS TO EXCEED
CURRENT ANALYSTS' CONSENSUS FORECAST FOR THE FULL YEAR


If current trends continue, Wolseley expects that Group trading profit before
exceptional items will exceed the current analysts' consensus forecast of GBP326
million for the financial year to 31 July 2010. This is primarily due to the
achievement of better than expected cost efficiencies. The economic environment
continues to provide limited visibility and demand is not consistent across our
business units.

Aggregate restructuring costs are now expected to be material in the
context of the results for the current financial year and therefore the GBP10
million of costs identified in the Interim Management Statement on 18 November
2009 will be classified as exceptional. In addition, the results will include an
impairment charge in relation to the Group's business change programme as
referred to in the announcement on 18 November 2009.

The Group will announce its half year results for the six months ended 31
January 2010 on 22 March 2010.

i kept burning my fingers with this one as never ever managed to get the timing right, but clearly now perking up

I am in a share-save with my friend at 7-01p looks good at this moment in time.June 2011 will see the shares mature,i can see it doing really well by then if the american housing market picks up.Wolseley is a very well run company and makes good profits.Good luck to all share-holders.

Wolseley revenue falls 15% in first half-year
Business Financial Newswire
Building supplies group Woleley reported revenue down 15.1% at 6.33bn for the half-year to end-January, but said the rate of like for like revenue decline continues to slow. Gross margin was broadly maintained.

The group generated a trading profit of 167m in the half-year, compared to 251m in the prior year period.

There was an operating loss of 207m, reduced from 381m previously, while the loss before tax was 261m, down from 464. Net debt was reduced by 49m since the start of the financial year to 910m (31st July 2009 : 959m).

Distribution and other administration costs in the half year excluding exceptional items were reduced by 272m.

Ian Meakins, Group CEO, said: 'The results for the first half reflect good progress on cost reductions which were delivered ahead of schedule. Market conditions remain challenging, though we are now seeing stabilisation in many of our markets. Against this backdrop, the Group will continue to focus on an improved service to customers, maintaining market share and gross margins, delivering a good cash performance and maintaining cost discipline."

'The resource allocation work shows us clearly where to prioritise investment in our leading businesses where we have a strong competitive advantage and can generate the best returns.'

Interim Management Statement

Third quarter highlights

Revenue declined 7%, like for like decline of 2%.

Gross margin of 27.8%, ahead of Q3 2009, flat year to date compared to last year.

Distribution and administration costs 106 million better than last year.

Strong trading profit growth to 101 million as gross profit shortfall more than offset by improved cost base.

Net debt at 30 April 2010 of 1,067 million.

much as i like this stock and think it is an excellent one if you want exposure in the house building sector, it has a jinx for me and i can never get my timing right on it, but don't let me put anyone else off the company - this has to be a "goodie"

Strong open.

i never ever get the timing on this one right, so beware!
however, with markets everywhere looking very soggy, this could be a could shorting target, especially if the 200 dma (black) does not hold

makes a change for me to call WOS correctly, even if (or perhaps because!) i didn't do anything myself

Wolseley To Dispose Of Brandon For GBP43 Million
Wolseley (LSE:WOS)

Today : Tuesday 24 August 2010
Wolseley PLC (WOS.LN), a trade distributor of plumbing and heating products to professional contractors, said Tuesday that it has agreed to dispose of Brandon Hire Ltd, its U.K. tool and equipment hire business, to Rutland Partners.

MAIN FACTS:

-Total cash consideration of GBP43 million will be payable on completion, subject to normal closing adjustments.

-Completion is expected within 30 days.

rather late in the day (13th) i did actually take a small short position here ..... it must be almost the first time i have got this stock right though i am surprised at the quantum of this morning's fall

Wolseley fell after CRH warned over its outlook for the U.S.

Irish building supplies giant CRH set the tone for the session, warning core earnings would fall 10 percent this year, pointing to mounting concerns over the economy in the United States.

============

with the above in mind + high volume in WOS + horrid chart (see above) and offer book far longer than bid, i reckon it will do no harm at all to leave my short running, with 1150 as the obvious target or support

6 month chart - long or short?

i have always called this wrong so have given up putting money with mouth, but i'ld reckon a short as with UK housebuilders and gov't-reliant contractors (SCHE!)

I've been long since the summer, so looking at 50%+ - just taken a contrarian short until I decide what to do :-)

Interim Management Statement

Builders' merchant group Wolseley said revenue increased by 6% on a like-for-like basis in the third quarter to end-April.

Trading profit was 30% ahead at 131m ,with gross margin, at 28%, 0.2% ahead of last year.

Operating costs were 19m lower than last year (underlying: 2.8% higher).

Adjusted net debt was 824m, 109m lower than 31st January 2011.

During the quarter the Group generated revenue of 3.271bn, 1% ahead of last year, and 6% ahead on a like-for-like basis.

The impact of inflation on Group revenue continued at about 3%, principally due to rising commodity prices.

Despite continued pricing pressure, Wolseley said focus on improving customer and product mix led to a higher gross margin of 28% in the quarter, 0.2% higher than last year.

Operating costs were 19m lower, principally as a result of disposals, though the underlying cost base in constant currency increased by 2.8% compared to last year.

The net impact of non-recurring items charged to trading profit in the quarter was not material to the overall result.

Trading profit of 131m was 30m higher than last year.

RNS Number : 2115K

Wolseley PLC

12 July 2011

WOLSELEY PLC

12 July 2011

Disposal of Electric Center

Wolseley announces that it has signed an agreement to sell its Electric Center business to Edmundson Electrical, a leading distributor of electrical equipment to trade and industry in the UK. Completion will follow a period of employee consultation and is expected to occur in the next few weeks.

In the year ended 31 July 2010, the business generated revenue of GBP130 million and trading profit of GBP1.5 million. In the 10 months ended 31 May 2011, revenue was GBP115 million and trading profit was GBP2.2 million. Net assets at completion are expected to be around GBP29 million and the transaction is expected to generate a small gain on disposal. The cash consideration will be used to pay down debt.

Commenting on the sale, Ian Meakins, Chief Executive of Wolseley plc, said:

"This transaction is in line with our strategy of focusing on businesses where we can create leading market positions. Given the complementary nature of Edmundson and Electric Center, the transaction represents a good outcome for the business and its employees. We wish them every success for the future."

For further information please contact

Wolseley plc

as i have said before, i never ever get the timing right on this stock, but with that caveat, it's worth noting that 200 dma was pierced (south) with considerable force today, closing near its session low

Another gap buster.

Another stonking day here - Croc would be pleased :-)

Closed up 99p.

Final Results.

Financial highlights

. Revenue of 13,558 million, 3% ahead of last year and 5% ahead on a like-for-like basis.

. Gross margin 20 basis points higher despite challenging trading conditions.

. Trading profit of 622 million, 38% ahead of last year.

. Adjusted net debt 490 million better than last year.

. Final dividend of 30 pence per share - total dividend for the year 45 pence per share.


Operating and corporate highlights

. Improved trading profit and gross margins in most businesses driven by better customer service and employee engagement.

. Five small bolt-on acquisitions in the USA and Denmark since last year.

. Disposal of non-core businesses largely completed.

. Redomicile to Switzerland completed.

. Refinancing of 822 million revolving credit facilities completed with significant reduction in future finance charges.

. Planned capital investment of 160 million including 90 new branches.

A Grand old Duke of York in the last 6 trading days - currently up 125 +8.2%

Another fine candle today.

1st Quarter Resukts.



First quarter highlights

Like-for-like revenue growth of 5%.

Gross margin of 27.1% was 0.1% ahead of last year.

Trading profit was 16% ahead at 185 million.

Adjusted net debt of 587 million, 118 million lower than 31 July 2011.

Sold Encon in the quarter, and completed the disposals of Build Center and our minority stake in Stock Building Supply in November.

Completed two acquisitions in the quarter and one in November, in the USA, with aggregate annual revenue of 88 million for consideration of 29 million.

1959 the high since the summer and a possible double top.

Not bad - up nearly 6 quid since late September.

Near 3 year highs today @2402.

Just the £10 increase since late August.

New 4 year highs today for Croc's favourite share @£25.00 - just an £11 increase since September.

New 4 year highs again today - 2519p.

RNS Number : 1158A

Wolseley PLC

27 March 2012

WOLSELEY PLC

Results for the half year to 31 January 2012


GBPmillion H1 2012 H1 2011 Change Like-for-like
change (3)
Revenue 6,841 6,629 +3% +5%
Gross profit 1,876 1,833 +2%
Trading profit (1) 310 275 +13%
Profit before tax 250 195 +28%
Headline earnings per share (1) 78p 60p +30%
Adjusted net debt (2) 529 933 404
Dividend per share 20p 15p +33%

Financial highlights

-- Revenue of GBP6,841 million, 5% ahead on a like-for-like basis.

-- Trading profit of GBP310 million, 13% ahead of last year.

-- Underlying(4) trading profit in the ongoing(4) business of GBP318 million, 16% ahead of last year.

-- Good cash generation with adjusted net debt of GBP529 million, GBP404 million better than 31 January 2011. Net debt will be reduced further on completion of the disposal of Brossette.

-- Headline earnings per share of 78p, 30% ahead of last year.

-- Interim dividend increased by 33% to 20 pence per share.

Operating and corporate highlights

-- Continued strong growth in USA and weakness in Europe.

-- Gains in productivity and strong flow-through of incremental revenue to trading profit.

-- Underlying trading margin for the ongoing businesses of 5.0%, 0.4% higher than last year.

-- Six bolt-on acquisitions completed since 1 August 2011 for GBP41 million with aggregate annual revenue of GBP100million and invested GBP6 million in 39 new branches.

-- Disposals of Encon, Build Center and residual stake in Stock Building Supply completed.

-- Completion of Brossette sale expected shortly.

(1) Before exceptional items and the amortisation of acquired intangibles.
(2) Including receivables financing and construction loan debt.
(3) The increase in revenue excluding the effect of currency exchange, acquisitions and disposals, trading days and branch openings and closures.

(4) Throughout this report 'underlying' results exclude the impact of non-recurring charges of GBP16 million (2011 : GBP3 million)

and 'ongoing businesses' excludes businesses that have been sold or are held for sale.

Ian Meakins, Chief Executive, commented:

"Wolseley has delivered another decent performance, despite challenging economic conditions in Europe, with like-for-like revenue growth of 5 per cent. The underlying gross margin was maintained and our ongoing focus on operational efficiency has delivered further improvements in the trading margin of the ongoing business to 5 per cent. Good cash flow has enabled us to continue to reduce net debt and to invest for future growth. We have completed a number of value-enhancing acquisitions in the US and Nordics and they are being integrated promptly.

"Like-for-like growth trends for the Group since the end of the period have been slightly lower than the first half overall with the US a little better and Europe a little weaker. We will continue to pursue operating efficiencies and remain focused on improving customer service, gaining market share and protecting our gross margins. We will continue to invest selectively in the business where we can exploit growth opportunities and generate good returns.

"An attractive and sustainable dividend is an important element of shareholder returns and we have raised the interim dividend to 20 pence per share, 33 per cent ahead of last year reflecting our confidence in the business."

Tuesday May 29 =

- Economic bellwether Wolseley posts a third-quarter trading update, where it is expected to warn that the eurozone debt crisis and poor weather have made for challenging trading in Europe though the US is holding up. For the year to July 31, Panmure Gordon forecasts a rise in profits at the buildings merchant from £556m to £620m before tax and exceptionals.

Wolseley records growth in third quarter as margins hold
StockMarketWire.com
Builders' merchant group Wolseley today that said revenue increased by 4.7% and like-for-like growth was 3.8% in the third quarter to end-April. Trading profit of £139m was 10.3% ahead of the prior year period.

Gross margin of 27.7% was held at last year's level.

Operating costs were 3.6% higher than last year.

Net debt was £277m at period end, £314m better than 30th April 2011.

Wolseley completed the previously announced sale of Brossette and sold Bathstore for £15m.

Two small bolt-on acquisitions were completed in the third quarter in US and Denmark.

During the quarter the Group generated revenue of £3.069bn, 4.7% ahead of last year and 3.8% ahead on a like-for-like basis.

The impact of inflation on Group revenue was approximately 2%.

The gross margin of 27.7% was unchanged, despite a continuing tough pricing environment.

Operating costs were 3.6% higher than last year including increases in employee share scheme expenses of £4m and £2m of one-off restructuring charges. Headcount continues to be tightly controlled, particularly where markets are deteriorating. In light of tough markets in Europe, as noted at the half year, the Group may incur further restructuring charges in the fourth quarter though these are unlikely to be material in the context of the Group's full year results.

Trading profit of £139m was £13m or 10.3% higher than last year.

The trading margin improved to 4.5% (2011: 4.3%). The number of trading days in the period was the same as last year.

Ian Meakins, CEO, said: "Wolseley has continued to make decent progress in the third quarter, with good growth in the USA and Canada partly offset by Europe. We held our gross margin overall and controlled costs to generate 10% trading profit growth in the ongoing business. We will continue to pursue operating efficiencies and remain focused on customer service, gaining market share and protecting our gross margins. Given the uncertain economic outlook in Europe we will remain vigilant on the cost base while continuing to drive growth initiatives in the more robust markets."

Blackrock > 15%.

17 July 2012


Wolseley plc - CONTINENTAL EUROPE
----------------------------------

Wolseley's strategy is to focus on businesses where it can establish leading positions in attractive markets and consistently generate good returns for shareholders. In this context, we have decided to explore strategic options for the future of our businesses in France. In the year ended 31 July 2011 the businesses generated revenue of GBP1.3 billion and employed net assets of approximately GBP500 million, including GBP136 million of goodwill. In light of this review the appropriate carrying value of these assets will be assessed at year-end and this is likely to give rise to a non-cash impairment charge. This announcement is being made in order to enable us to commence consultation with our employees in France. In our Q3 IMS we reported difficult market conditions in Continental Europe and these conditions have continued. We continue to take appropriate actions to reduce our cost base and, in line with previous guidance, we have incurred one-off restructuring costs of approximately GBP20 million since 1 August 2011. As previously stated, it is likely that these costs will be charged to trading profit. In Denmark, where we have strong market positions, trading conditions have remained challenging and we will review the carrying value of goodwill and intangible assets of GBP393 million associated with this business. This is also likely to give rise to a non-cash impairment charge.

New high again this morning @2838p - don't you love a boring share.

Finally closed these and hope to buy back at a lower price - its like parting with an old friend.

Wolseley , the heating and plumbing supplies distributor, will be issuing full-year results on Tuesday, and it's been a bit of a successful recovery story of late. Profits plunged in 2009, and early that year the shares reached a low of 497p. But after dropping further the following year, profits have turned around and the shares have recovered to 2,623p, making them a five-bagger.

Earnings growth of around 13% is expected for the year, but much of the recovery looks to be already in the price, with a forward price-to-earnings (P/E) ratio of 16 looking a bit toppy. And the expected dividend yield of 2% is nothing to retire on. But being so international -- only about a fifth of Wolseley's business is in the UK -- it could provide a good barometer of the West's economic situation.

Deutsche Bank upgrades Wolseley from hold to buy, target price raised from 2,470p to 3,092p.

Final Results

Financial highlights

§ Revenue of the ongoing businesses 5.4% ahead of last year.

§ Trading profit of the ongoing businesses £658 million, 10.4% ahead of last year.

§ Restructuring charges of £17 million (2011: £nil) charged to trading profit.

§ Non-cash goodwill impairment of £353 million relating to acquisitions in 2003 to 2007.

§ Headline earnings per share of 168.4 pence, 17.8% ahead of last year.

§ Strong cash generation with net cash of £45 million, £568 million better than 31 July 2011.

§ Proposed final dividend of 40 pence bringing total for the year to 60 pence, 33.3% ahead.

§ Proposed capital return of £350 million via a special dividend and share consolidation.

Operating and corporate highlights

§ Good growth in USA and Canada, recovery in UK and weakness in Continental Europe.

§ Gross margin in the ongoing business of 27.5%, 0.2% below last year despite significant pricing pressure and 0.1% adverse impact of non-recurring charges.

§ Further gains in productivity and flow through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.2%, 0.3% higher than last year.

§ Nine bolt-on acquisitions with annualised revenue of £125 million.

§ Disposals of Build Center, Brossette, Encon, Bathstore and residual stake in Stock Building Supply completed; and Woodcote sold since the year end.

§ Ongoing review of future strategic options in France, as announced in July.

a good little dabble at 2615 ...... a ridiculous plunge by "sellers on the news", but thanks very much guys!

must be the first time i have ever made money on this stock .... i got so fed up getting my timing wrong that i haven't traded it for many many months

You beat me cynic - I bought @2616 and now thinking of closing - what a mad reaction!

on consideration, i think i'll let them run for now as i can't see that there'll be any negative comment from the pundits ..... if the markets start to look a bit soft i may change my mind

Stopped out +100p

i'm still nicely in the money, but serves me right for not selling when much further ahead but going out for the rest of the day

Deutsche Bank reiterates it's Buy TP 3,073.00

1st Quarter Results

First quarter highlights

§ Gross margin of 27.2% in line with the same period last year.

§ Trading profit up 7.6% at £198 million.

§ Continued strong cash generation with net debt of £87 million.

§ Two acquisitions in the USA for total consideration of £80 million.

§ After the end of the period agreed to acquire 22 Burdens branches, subject to OFT approval.

§ Restructuring charges committed to date in Continental Europe of £33 million.

Wolseley is a rare beast -- a FTSE 100 constituent whose share price has galloped. The building materials firm has seen its price grow from a low of £19 back in December last year to £28.42 today -- close to 50%.

Full-year results in October showed an 18% rise in earnings per share, allowing the dividend to be boosted by a third to 60p per share. And then first-quarter results this week showed a 7.6% rise in trading profit, from a 2.1% growth in like-for-like sales -- with net debt almost wiped out.

You'd have done very well to buy Wolseley shares in November. And it's looking increasingly like there's a good long-term future for this "picks and shovels" company, which should do well from the recovering construction industry.

Bought in today for the longer term..hope to double in the next few years!

Proposed Changes to UK Staff Pension Arrangements

Wolseley has started a three-month period of consultation regarding proposed changes to staff pension arrangements in the UK, in light of its desire to provide sustainable and competitive pension arrangements for all of its employees.

The Company is proposing to close the current UK Defined Benefit (DB) Pension Schemes for future accrual on 31 December 2013. The DB pension benefits that employees have already built up will be protected and there will be no changes to the arrangements for retired and deferred members.

The proposals will provide all UK employees with access to a highly competitive pension scheme effective from 1 January 2014 which complies with legislation on auto enrolment which comes into force later this year.

The Company remains committed to meeting its DB pension liabilities and has invested £313 million into the scheme over the past three years including £125 million in January 2013. Wolseley expects no significant change to the overall cost of pensions as a result of this proposal.

Ian Meakins, Chief Executive, Wolseley, commented:

"We want to provide equitable and sustainable pension benefits for all UK employees. Our proposal will provide all staff with competitive pension benefits whilst reducing the impact of financial risk and volatility of the defined benefit scheme on our business in the long-term."

Liberum Capital Buy 3,300.00 3,302.00 3,150.00 3,730.00 Upgrades

WOS should certainly benefit from improving US housing data and also the budget boost given to UK housing

for myself, i have a bad history with this share, so i'm unsure how much of the above is already discounted

Half year results from plumbers’ merchant Wolseley (LON:WOS) should show the company still facing a number of challenges, not least in Europe, where like-for-like revenue growth turned negative in the first quarter of the fiscal year.

Panmure Gordon thinks the key issues in the interim statement will be: Ongoing strength of the North American recovery; trading and provisioning in the European and Nordic territories; the UK market and the impact of recent consolidation.

The City broker forecasts half year underlying earnings (EBITA) of £340mln. Group net debt at the end of the first quarter was £87mln; Panmure Gordon thinks this will rise to £490mln after the company’s special dividend payment, which soaked up £350mln.


http://www.proactiveinvestors.co.uk/companies/market_reports/55095/week-ahead-bellway-wolseley-and-globo-0000.html

Half Yearly Report

Financial highlights

§ Revenue in the ongoing businesses of £6,276 million, 2.2% ahead on a like-for-like basis.

§ Gross margin for the ongoing businesses increased to 27.8%.

§ Trading profit of the ongoing businesses 7.6% ahead of last year.

§ Trading margin for the ongoing businesses of 5.2%, 0.4% higher than last year.

§ Net debt of £871 million after £462 million of dividends, £125 million of one-off pension contributions and purchase of £110 million own shares by Employee Benefit Trusts.

§ Interim dividend increased by 10% to 22 pence per share.



Operating and corporate highlights

§ Continued market share gain and growth in USA, broadly flat in Canada and UK and weakness in Europe.

§ European headcount reduced by 990 (7.2%) since 31 July 2012.

§ Continued focus on productivity improvements across the Group.

§ In France, detailed plans to simplify and refocus Reseau Pro, its Building Materials business, including proposed disposal or closure of up to 40% of its network, to create a strong regional player in the north.

§ Four bolt-on acquisitions completed in the period for £120 million with aggregate annual revenue of £245 million.

told you all i always got this one wrong! .... market doesn't care for the numbers at all

==============

the nimble-fingered could have made a very nice and quick turn already ...... sp opened down about 70 and now only down 27

Sold my holding, been in since May 2012 1975p :-))

Well done DC!

Thanks skinny, having a spring clean out at the moment. :-))

From Panmure Gordon today:
"Steady progress from Wolseley with a continuing good performance from the US being partially offset by tough conditions in Europe. Cost control and market share gains remain a feature, contributing to stable margins. While investors will focus on US housing we believe that there is a lot of good news already in the share price; take profit, Sell.
Headlines. A solid Q3 trading update with reported revenue up 6.0% to £3.2bn or +2.4% on a like for like (LFL) basis. A stable gross margin and improved cost control saw trading profit up 7.9% to £150.0m; a trading margin of 4.6%. Early trade in Q4 has continued at the same rate.
Divisional. The US remains the main driver behind the growth with LFL revenue +8.3%. The RMI (repair, maintain, improve) segment remains resilient, new housing positive but industrial is slow. Canada LFL was flat due to weaker residential volumes but infrastructure spend is positive. UK continues to improve with LFL +5.2% due to further market share gains. Nordic and European markets are challenging, seeing negative LFL trends. Progress is being made in its French restructuring.
Impact on forecasts. Ahead of the 0900 conference call we are not changing our forecasts. Our FY 2013E PTP is £670m, EPS 169.7p with consensus PTP being £653m, EPS 180.5p. For FY 2014E our PTP is £750m, EPS 191.3p with consensus PTP being £800m, EPS 216.4p.
Valuation. The calendar 2013E P/E is 17.5 falling to 16.0x and EV/EBITDA is 11.3x falling to 10.4x. The dividend yield is 2.3% with the payment covered 2.5x by earnings and 1.6x by FY 2014 FCF. The FCF yield averages 2.7% over the next three years.
Recommendation. With the share price having recently sailed through our target price we still believe it is right to lock in profits hence our cautious recommendation. The medium term attraction of North America remains in place so any price weakness will prompt us to revisit our recommendation."

Final Results

Financial highlights

§ Revenue of the ongoing businesses 4.1% ahead of last year, like-for-like growth of 2.9%.

§ Gross margin of the ongoing businesses of 27.8%, 0.3% ahead of last year.

§ Trading profit of the ongoing businesses £725 million, 10.7% ahead of last year.

§ Impairments and exceptional charges of £174 million (2012: £377 million).

§ Headline earnings per share of 181.8 pence, 8.0% ahead of last year.

§ Strong cash generation with net debt of £411 million (2012: £45 million net cash).

§ Proposed final dividend of 44 pence bringing total for year to 66 pence, 10.0% ahead of last year.

§ Proposed capital return of £300 million via a special dividend and share consolidation.

Operating and corporate highlights

§ Good growth in US, early signs of recovery in UK but continued weakness in Continental and North Europe.

§ Tight cost control and restructuring executed in Continental and North Europe.

§ Good flow-through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.6%, 0.3% higher than last year.

§ Six bolt-on acquisitions completed with annualised revenue of £301 million.

§ France strategy being executed as set out at the half year results.

AGM obviously went well!

I always follow this one but have avoided like the plague for many months as I could never ever call it right!

Results for the half year to 31 January 2014

Financial highlights

§ Revenue of the ongoing businesses 5.2% ahead of last year including like-for-like growth of 3.2%.

§ Gross margin of the ongoing businesses of 28.2%, 0.4% ahead of last year.

§ Trading profit of the ongoing businesses £360 million, 8.8% ahead of last year.

§ Headline earnings per share of 91.4 pence, 15.3% ahead of last year.

§ Continued good cash generation with net debt of £927 million (2013: £871 million) after ordinary and special dividend payments of £476 million over the last year.

§ Proposed interim dividend of 27.5 pence per share, 25.0% ahead of last year, including a rebasing of 15% reflecting the Group's strong and sustainable cash flows.

Operating and corporate highlights

§ Good growth in the USA and UK and modest improvement in like-for-like growth in Nordics. Continued weakness in Central Europe and Canada.

§ Decent flow-through of incremental revenue to trading profit.

§ Trading margin for the ongoing businesses of 5.6%, 0.2% higher than last year.

§ Two bolt-on acquisitions completed in the period with annualised revenue of £52 million. Previously announced acquisition of Puukeskus now completed.

§ Good progress on investment in technology and processes to support the development of more efficient business models.

i never ever get my timing or direction right on this one, so have avoided (losing money!) for the last year or two!

however, the results certainly show how the housing market is improving - HWDN and prob a couple of others would also indicate likewise - so those of a brave nature may still want a dabble, especially before usa wakes up

Interim Management Statement

Third quarter highlights

§ Revenue of the ongoing businesses 6.0% ahead of last year at constant exchange rates, including like-for-like growth of 5.1%.

§ Gross margin for the ongoing businesses of 28.1%, 10 basis points ahead of last year.

§ Trading profit for the ongoing businesses £155 million, 9.1% ahead of last year at constant exchange rates.

§ Foreign exchange movements adversely impacted trading profit by £12 million.

§ Five bolt-on acquisitions for total consideration of approximately £119 million.

§ Good cash generation with net debt of £914 million (30 April 2013: £694 million), after £90 million cash out-flow for acquisitions in the quarter.

Results for the year ended 31 July 2014

Financial highlights

§ Revenue of the ongoing businesses 6.1% ahead of last year at constant exchange rates, including like-for-like growth of 4.2%.

§ Gross margin of the ongoing businesses of 28.1%, 20 basis points ahead of last year.

§ Trading profit of the ongoing businesses £761 million, 8.6% ahead of last year at constant FX rates.

§ Foreign exchange rate movements adversely impacted trading profit by £30 million.

§ Headline earnings per share of 196.2 pence, 9.9% ahead of last year.

§ Strong cash generation with net debt of £711 million (2013: £411 million) after ordinary and special dividend payments of £489 million over the last year.

§ Proposed final dividend of 55.0 pence per share, bringing the total for year to 82.5 pence per share, 25.0% ahead of last year, including a rebasing of 15.0% announced at the half year results.

§ £250 million share buyback programme announced.

Operating and corporate highlights

§ Continued strong growth in the USA; Europe and Canada remained subdued.

§ Good flow-through of incremental ongoing revenue to trading profit of 10.8%.

§ Trading margin for the ongoing businesses up to 6.0%.

§ Invested £194 million in eight bolt-on acquisitions with annualised revenue of £444 million.

§ Good progress on investments supporting the development of new business models.

§ Continued strong growth of e-commerce.

(1) "Ongoing businesses" excludes businesses that have been disposed of, closed or classified as held for sale.
(2) Before exceptional items, the amortisation and impairment of acquired intangibles and with respect to headline earnings per share before non-recurring tax items.
(3) Restated for IAS 19 (Revised) "Employee benefits".
(4) The increase or decrease in revenue excluding the effect of currency exchange, acquisitions and disposals, trading days and branch openings and closures.

chart above shows why i gave up on this stock ages ago ..... the figures didn't look bad, but the market reaction was dramatic ..... the few times i had a dabble, i always but always got the timing and/or direction wrong!

well i have suckered myself again this morning and bought a few as drop looks nuts to me

wonders never cease :-)

Goldman Sachs today:
"We make 10 rating changes. We upgrade LafargeHolcim and Wolseley to Buy (from Neutral); we downgrade Braas Monier, Bovis, Redrow, Crest Nicholson (off CL) and Bellway to Neutral from Buy. We downgrade Berkeley Group, Countrywide and Foxtons to Sell from Neutral. We also remove the Not Rated designation from Salini Impregilo and reinstate as Neutral."

sp has reacted badly to the latest numbers, but not really sure why
if WOS is going to concentrate its efforts on its US side, then that can be no bad thing for UK investors