Strong U.S. markets boost Ferguson profit
Staff Writer | June 19, 2018
Plumbing and heating products distributor Ferguson, formerly Wolseley, posted a 17.1% jump in third-quarter trading profit on Tuesday thanks to strong US residential markets.Article continues below
In the three months to 30 April, trading profit rose to $356m on revenue of $5.08bn, up 10.2% on the same period a year ago. Meanwhile, gross margins continued to improve, up 40 basis points to 29.3%.
Revenue in the U.S. business was up 11.5% at constant exchange rates to $4.1bn, while trading profit rose 20.8% to $334m.
Ferguson said U.S. market growth continued to be good with residential demand supporting broadly-based growth across all regions.
Commercial markets, whilst lower growth than residential, also remained good and industrial markets continued to recover strongly.
Canada and Central Europe saw revenues rise 8.9% to $342m and trading profit increase 11.6% to $11m. In the UK, however, revenue declined 10.9% in the quarter to $629 and trading profit was 29.3% lower at $23m.
Chief executive John Martin said: "The U.S. continued to grow strongly with organic revenue growth of 10.6% in the quarter. Growth was broadly based across all U.S. regions, supported by good market conditions.
"We also continued to manage gross margins effectively, making further progress. We generated good growth in Canada and in the UK we continued to focus on executing the restructuring plan.
"The fourth quarter has started well with organic revenue growth in line with the third quarter. Given the third quarter outturn, the group is well positioned for a successful outcome for the year." ■ What to read next
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