The company announced the news in a trading update published to coincide with its AGM.
“Significant management action has been taken with a major programme of cost reduction, lowering headcount by more than 10%,” the company said. “The cost base will continue to be kept under review in response to changing market conditions.
Wolseley said a further softening of the US housing market and weaker than expected lumber prices during the three months ended October 31 had impacted sales and profits in its US building materials business Stock.
“Lumber and structural panel prices, which when combined account for 45% of Stock’s revenues, have fallen by 23% and 38%, respectively,” Wolseley said.
Organic sales in the US business was down by around 6% for the quarter, compared to a 27% decline in housing starts. But the repair, maintenance and improvement market benefited from a positive economic environment.
Including acquisitions, revenue from the US business was 10% higher than a year ago and trading profits 5% higher. But a 6% adverse currency translation for the UK-based company meant US trading profits in sterling were slightly down on 12 months ago.
Stock acquired Kempsville Building Materials on November 20. Virginia-based Kempsville offers traditional building materials and value added products such as roof trusses, wall panels, staircases and doors.
Wolseley has around 80,000 employees operating in 27 countries.
