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Wolseley’s revenues plunge 60% in April due to lockdown

Ferguson PLC (LON:FERG) said April revenue at its UK plumbers' merchant business Wolseley plunged 60% as the coronavirus crisis lockdown hit activity levels.

For the quarter to April, Wolseley's sales dropped by 27% and it swung to a loss of US$12mln, though Ferguson said it still intends to push ahead with plans for a demerger.

"The board's strategic intent to demerge the UK business is unchanged and we continue to progress the demerger process, although timing will depend upon the stabilization of market conditions.

Monthly revenue in the US and Canada fell by 9% and 34% respectively and the plumbing and heating products distributor has implemented cost-saving measures such as suspending the US$500mln share buyback, pausing acquisitions, withdrawing the interim dividend and reducing full-year capital expenditure to US$280-300mln.

In May, the group sold its investment in Swiss engineering company Meier Tobler for US$31mln completing the exit of all trading operations in continentaRead More – Source