Wolseley still cautious after fall in profits

Builders merchant Wolseley says its profits fell 34%in the first half.

The world's largest builders merchant distributor said it remained cautious due to limited visibility and concerns about the unemployment rate and credit levels.

However it did add that there had been some stabilisation.

Wolseley posted first-half revenues down 15.1% to £6.3bn, with a trading profit of £167m, down 33.5%

It said it had cut distribution and other administration costs by £272m.

"The results for the first half reflect good progress on cost reductions which were delivered ahead of schedule," Chief Executive Ian Meakins said in a statement. "Market conditions remain challenging, though we are now seeing stabilisation in many of our markets."