Where will this lead to?

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