UK-based Wolseley plc has started a fundamental review”of Stock Building Supply’s impact on its overall results, which continued to suffer due to the struggling housing market in the U.S. The company may sell the unit.
“We must acknowledge that further large-scale reduction of Stock will inevitably eat into the infrastructure of the business,”said Chief Executive Chip Hornsby. “It is also abundantly clear that conditions in the new residential market will continue to get worse before it gets better so riding out the storm is not an option for us.”
Stock posted a trading loss of £123 million (US$227 million) for fiscal year 2008. The magnitude of the of loss masks the strong performances of other members of the group, Hornsby said.
