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Performance review
Future outlook
Recent events relating to the sub-prime market in the US and the subsequent concerns over liquidity in global financial markets have created uncertainty which is reflected in less favourable recent sales trends for a number of the Group’s businesses. It is too early to assess whether these trends will continue.
There are no signs yet of any upturn in the US housing market and the RMI market is now beginning to soften. The commercial and industrial market should remain positive, albeit at lower rates of growth. The strength and diversity of the Group’s US operations and their ability to respond rapidly to the changing operating environment will enable them to continue to outperform the market.
Generally in Europe, the underlying fundamentals of the construction markets remain sound and Wolseley’s operations are expected to show further good progress.
Irrespective of market conditions, the Group will continue to execute its strategy of value creation through a combination of organic growth and acquisitions. The Group is confident that it will generate competitive advantage by pursuing the initiatives relating to supply chain, sourcing and private label. The rigorous focus on cash flow maximisation and cost efficiency will continue as will the swift and decisive action in response to prevailing market conditions. The Group is positioned well to benefit from any improvement in business and consumer confidence.
Per thousand board feet US$
