The UK-based company, which announced 2,000 job cuts in its American building materials business Stock Building Supply last November, will now make another 1,500 redundancies in the division. A further 500 jobs will go at its US plumbing business Ferguson.
Wolseley said Stock’s trading profit was down by more than 40% for the five months ended December 31, after charging one-off costs of US$11m for 22 branch closures and a headcount reduction of 3,500.
In a trading statement, the company said profits had been hit by falling housing starts and lower lumber prices.
Lumber and structural panel prices fell by 22% and and 35% respectively during the period. Organic sales dipped by 9%, while housing starts decreased by 22%.
“The cost base will continue to be kept under review in response to changing market conditions,” the company said in a trading statement.
“The group continues to outperform in most of its principal markets,” added Chip Hornsby, Wolseley group chief executive. “The current actions being taken to adjust the operational cost base, whilst continuing to invest in the business, will position the group for sustained growth and margin improvement.”
