Job cuts prop up Wolseley figures forecast gains

PLUMBING and heating giant Wolseley gave its share price a boost yesterday after it said it expected trading profits to top market expectations.

Wolseley, which trades as Build Center and Plumb Center, said the upgrade reflected cost efficiencies rather than improved trading conditions. It added: "The economic environment continues to provide limited visibility and demand is not consistent across our business units."

Despite the cautious outlook, Wolseley shares ended the day up 12.5 per cent, at 1,630p, as investors welcomed the guidance that trading profits before exceptional items will exceed the current analysts' consensus forecast of 326 million in the year to July.

But analysts at Seymour Pierce warned that, aside from better cost efficiencies, there was "little to get excited about".

Wolseley said in November that it had cut a further 500 jobs during the first quarter of its financial year, on top of the 10,000 shed during the previous year.