Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Wolseley — 5 months ended 31 December 2008 Earnings Presentation
9 slides from Ferguson Enterprises's earnings presentation, Jan 26, 2009
Slide 1: Trading update for the five months ended 31 December 2008
The name the world builds on Trading update for the five months ended 31 December 2008 26 January 2009 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: Introduction
Introduction • Continue to act decisively and rapidly in response to unprecedented market conditions • Remain focused on achieving compliance with banking covenants • Outlook for 2009 remains extremely challenging • Despite this, current cycle presents significant opportunities for Wolseley The name
Slide 3: Overview
Overview Trading for 5 months ended 31 December 2008 • Unprecedented events in global financial market and negative GDP trends continue to impact Wolseley’s trading environment • Further market deterioration, particularly in Europe • Group revenue up around 3% and trading profit down around 45% • Ne
Slide 4: North America
North America North American revenue up 6%, trading profit down by around 16% primarily due to Stock loss • Ferguson continued to outperform the market. In US dollars revenue down 10% and underlying trading profit down around 13% • Stock revenue down around 23% and trading loss for period around $11
Slide 5: Europe
Europe European revenue broadly flat, trading profit down by around 60% • UK and Ireland - revenue down by around 12%, trading profit down around 80% • UK restructuring actions well underway to deliver expected benefits • French revenue in euros around 4% lower, trading profit down over 60% • DT rev
Slide 6: Actions taken to reduce net debt
Actions taken to reduce net debt • Wolseley UK has entered into a receivables factoring arrangement which reduced net debt at 31 December 2008 by £72m • Group entered into just over €1.7 billion zero cost collar transactions at protective floor limits of €1.05 and €1.02 • Further transaction to conv
Slide 7: Exceptional costs and benefits from restructuring actions identified
Exceptional costs and benefits from restructuring actions identified – 1 August to 31 December 2008 Cost £m Headcount Benefit Benefit reduction £m 2009 £m pa UK and Ireland 51 2,170 47 88 Nordic - 550 27 33 Central and Eastern Europe 17 180 4 6 Europe 68 2,900 78 127 US plumbing and heating 14 1,100
Slide 8: Outlook
Outlook • Expect macro economic conditions to deteriorate in the short term • Until conditions stabilise the Group is unlikely to see any upturn in its markets • Until consumer confidence returns and availability of finance for customer projects improves, the Group expects performance in North Ameri
Slide 9: Q&A
Q&A The name the world builds on
Wolseley — 5 months ended 31 December 2008 Earnings Presentation on 6ix