Wolseley benefits from cost efficiencies

Wolseley, which trades as Build Center and Plumb Center, said the

upgrade reflected cost efficiencies rather than improved trading conditions.

It added: "The economic environment continues to provide limited visibility and demand is not consistent across our business units."

Despite the cautious outlook, Wolseley shares jumped 10 per cent as investors welcomed the guidance that trading profits before exceptional items will exceed the current analysts' consensus forecast of 326m in the year to July.

Seymour Pierce raised its own estimate from 320m to 340m following yesterday's update. However, it added that aside from better cost efficiencies, there was "little to get excited about".

Wolseley said in November that it had cut another 500 jobs during the first quarter of its financial year, on top of the 10,000 shed during the previous year.

The most recent cuts fell mainly in the United States.

The Reading-based firm posted a pre-tax loss of 766m for its last financial year after more than 1bn in write-downs and restructuring costs. In the UK, trading profits fell by 69 per cent to 55m.

Wolseley has around 50,000 staff and 4,400 branches worldwide.