Where will this lead to?

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.

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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!)