Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Wolseley — Corporate Update (July 2008)
8 slides from Ferguson Enterprises's corporate update, Jul 16, 2008
Slide 1: Pre close trading update for the eleven months to 30 June 2008
The name the world builds on Pre close trading update for the eleven months to 30 June 2008 16 July 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 expres
Slide 2: Overview
Overview • Trading conditions have deteriorated since May • US commercial and industrial markets have held up • European markets have softened, particularly the UK • Continuing actions to reduce cost base • Strong working capital improvement and cash flow • Board to recommend no final dividend, savi
Slide 3: Group financial summary
Group financial summary Eleven months to 30 June 2008 • Revenue up 1% • Trading profit down 28% • Profit before tax and amortisation and impairment of acquired intangibles down 35% • Spot cash to cash days improved to 52.6 days (30 June 2007: 57.4 days) and cash conversion more than 170% • Cautious
Slide 4: One-off costs and benefits – FY 2008
One-off costs and benefits – FY 2008 Cost £m Headcount Benefit Benefit reduction £m pa £m ytd Completed H1 Stock 1 1,750 26 19 Ferguson 1 1,575 38 19 Canada 2 1 1 France 3 75 1 1 H1 actions 7 3,400 66 40 Completed May-June Ferguson 16 200 5 Ireland 9 150 7 Other/Business improvement 2 N/A 17 May/Jun
Slide 5: North America
North America • US housing remains challenging although non-residential holding up • Ferguson continued to take market share • Local currency revenue up slightly, due to acquisitions • Organic revenue decreased 3% • Trading profit 10% lower, including £16m restructuring cost • 75 branches closed wit
Slide 6: Europe
Europe • Consumer confidence is deteriorating and affected trading, particularly the UK • UK and Ireland revenue up slightly reflecting the slower new housing and RMI markets. Trading profit was 17% lower, including £9m of one-off restructuring costs in Ireland • Wolseley France improving with reven
Slide 7: Outlook
Outlook • Many markets are likely to deteriorate • In the USA commercial and industrial markets should remain stable for the next few months • Focus on executing actions necessary to remain compliant with borrowing covenants The name the world builds on 7
Slide 8: Q&A
Q&A The name the world builds on