Leaders in plumbing, Wolseley, have reported a sharp decline in half yearly trading profits as a result of the slowing of the economy.

The Group has reported a drop in profits from ₤390 million in the half year ending 31st January 2007, to a mere ₤300 million as on the half year ending 31st January 2008, effectively down 23%. The firm has attributed most of these losses on the rising stock of unsold goods.

The company plans to achieve a turnaround by focusing on increasing the cash flow, reducing costs and growing the market share. In the face of expectations of further deterioration of the US housing market, the company expects further pressure on the “repair, renovate and improvement market”. Wolseley has already given 3,000 jobs the axe in the US and the company’s chief executive has issued warnings of additional job cuts.

In the UK however, Wolseley claims, that they are already beginning to show benefits in trading profits despite an acknowledged slowing economy.

Early trade on Monday already had the company’s stocks down 4.5%

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