Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — 5 months ended 31 December 2007 Earnings Presentation
8 slides from Ferguson Enterprises's earnings presentation, Jan 21, 2008
Slide 1: Trading update for the five months ended 31 December 2007
The name the world builds on Trading update for the five months ended 31 December 2007 21 January 2008 This presentation contains certain forward-looking statements. By their nature, such statements involve uncertainty; as a consequence, actual results and developments may differ from those expresse
Slide 2: Overview
Overview • Results affected by worsening US housing, low consumer confidence and weakness of US$ • Market conditions remain difficult to read • Swift action to cut costs and preserve cash • 3,000+ jobs lost ytd • Reduce capex to below last year • No change in strategy • Emerge from downturn with few
Slide 3: Financial summary
Financial summary • Revenue up 2% • Trading profit down by c25% • Adverse currency impact 2% • Group profit before tax and amortisation and impairment of acquired intangibles almost a third lower • Strong operating cash flow with cash conversion of c120% (75%) • Strong financial position with net de
Slide 4: North America
North America • Revenue in sterling down around 10% and trading profit down more than 40% • Headcount reduction of 3,000 (ytd) giving annual savings of £60m • Housing starts continue to decline and inventory of unsold homes remains high • Ferguson continued to take market share, although organic gro
Slide 5: Europe
Europe • Revenue up c17% and trading profit up 1%, including acquisitions • UK and Ireland revenue up 3% and trading profit up c1% reflecting the slower Irish markets • Wolseley France had slow start following further restructuring, start up issues at the new DC and a generally less positive busines
Slide 6: Outlook
Outlook • Likely that business conditions in a number of markets will become more challenging over the next few months • In the USA new housing is likely to deteriorate further, RMI is likely to slow but commercial and industrial markets should grow over the current financial year • Expect to increa
Slide 7: Appendices
Appendices The name the world builds on
Slide 8: North American headcount reductions
North American headcount reductions Costs and benefits Cost (£m) FY08 saving Annual cost (£m) saving (£m) Ferguson (0.3) 19.2 38.1 Stock (0.4) 16.7 22.2 Total (0.7) 35.9 60.3 The name the world builds on 8
Ferguson — 5 months ended 31 December 2007 Earnings Presentation on 6ix