Wolseley to cut costs and jobs

Wolseley, the plumbing and heating supplies giant, will slash costs and cut jobs after reporting a 30% fall in profits.

Battling the economic downturn, the company announced it plans to cut costs by 36% to about £320m in the year to the end of July, after initially planning to spend £500m.

It expects to announce job losses and branch closures in the next two months, the Daily Telegraph reported.

Group revenue was up 2% in the nine months to April 30, with trading profit down 23%.

Reuters reported Wolseley had been hit hard by the slowdown in the US housing market and that shares had plunged almost 60% in value over the past year.

Chip Hornsby, chief executive of Wolseley, said: "The cost reduction actions outlined today will enable us to restructure the business further, so that we are better positioned for the challenges ahead."