Wosleley’s latest quarter results show the plumbing and heating equipment supplier is struggling during the ongoing economic downturn.

Wolseley, the world’s leading plumbing and heating supplier, has posted its latest quarter results, showing a disappointing drop in underlying profits and weak sales.

Despite the fall in profits and sales in the three months to 31 October, Wosleley stated that the results were in line with management’s expectations.

Revenue from operations dropped by 13% to £3.4 billion compared to the same period last year and underlying trading profit fell by 28%.

Revenue in Europe and the US has also fallen over the quarter.

The company’s net debt has also risen from £959 million in July to £1.22bn. However, in its interim management statement published today (18 November), Wolseley stated that it expects net debt to drop by the next quarter and be further reduced by July 2010.

After a challenging three months, the recession-hit Wolseley maintains the position that a future struggle is likely and market conditions are set to remain difficult.

Ian Meakins, Group Chief Executive, said: “The overall trading environment continues to be extremely tough and we remain firmly focused on driving operational performance.

“We will continue to focus on delivering improved service to our customers, protecting share and gross margin, driving further cost reductions and delivering a good cash performance.”

Wolseley has already taken various cost reduction steps, including cutting 10,000 jobs last year.

The firm’s outlook is cautious with an expected deterioration in the group’s commercial and industrial markets in the short term. Wosleley’s new residential and RMI markets are predicted as heading towards stabilisation.