Interim figures from Wolseley (WOS) on Tuesday are expected to confirm that business in the US and UK continues to show steady growth, while conditions in mainland Europe remain much tougher.
Fortunately, trading in the US accounts for just over half of group sales at the international builders’ merchant. Like-for-like revenue growth in the first quarter reached 8 per cent in the US, thanks to a combination of increased spending on repair and maintenance in the housing sector and more new construction work. These are also the likely drivers of further strength in the UK.
Mainland Europe remains difficult, however. Last year plans were announced to restructure the underperforming French operation, including the sale of two-fifths of its branches in the country. Wolseley's operations in the Nordic region have also experienced declining sales, with trading in Finland and Denmark notably weak.
