The housing slowdown and fears of a recession in the United States hit 2007 profits at the owner of the Irish DIY and builders' merchant chains, Brooks and Heat Merchants.
London-listed Wolseley, owner of the two businesses, said in a trading statement yesterday that revenues were up but profits had plunged by 25 per cent in the five months to December 31st, 2007.
The group said Irish and British revenues grew 3 per cent, with profits up 1 per cent during the period. However, the multi-national's exposure to the slumping US housing market meant trading profits slid 25 per cent during that time.
The group depends on new housebuilding and repair and maintenance to existing homes for much of its business. Both of these sectors have slowed dramatically in the US.
Last year, the company also signalled that its Irish businesses were slowing as the momentum went out of the building boom.
The group has seen about €6 billion wiped off its market value over the past 12 months, largely on the back of bad news from the US, where it bought more than 50 smaller rivals over the past two years.
In an attempt to save €80 million, the company made more than 3,000 US workers redundant in the past six months.
Chief financial officer Steve Webster told a press conference yesterday that Wolseley was planning to cut capital expenditure plans by 20 per cent this year to about €600 million.
Wolseley closed down more than 26 pence sterling in London yesterday, finishing at 689.5 pence.
