More job cuts expected at Wolseley

Industrial Distribution staff -- Industrial Distribution, 7/14/2008 7:58:00 AM

When Wolseley plc announces its latest earnings report July 16, European analysts anticipate the news will be bad, and will include more job cuts.

The Sunday Telegraph http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/13/cnwols113.xml reported July 13 that Wolseley was expected to announce plans to cut hundreds of jobs in Great Britain and Europe.

The British building materials distributor, which employs about 14,000 people in Britain, has already laid off thousands of workers as a result of the housing slump.

In May, Wolseley announced it would start implementing cost-cutting measures including job cuts. In the United States, 75 of its Ferguson plumbing supplies distribution branches were closed.

"Given the continuing tough market conditions, our response has been to take further action to lower the cost base and improve cash flow, while continuing to pursue our longer term strategic aims," Wolseley CEO Chip Hornsby said at the time.

Wolseley ranked first in Industrial Distribution's Big 50 list with 2007 sales of $31.6 billion.