Trading Statement

Wolseley PLC 13 December 2001 NEWS RELEASE 13 December 2001 Wolseley plc AGM Trading Statement Wolseley is issuing a trading update in advance of the statement to be presented by the Chairman at the Annual General Meeting to be held at 12 pm at the London Underwriting Centre tomorrow, Friday 14 December 2001. Summary Despite the continued uncertainties following the events of 11 September, Wolseley has made a sound start to the current financial year. The group has seen no significant changes to the outlook as stated in the September Preliminary Results announcement. For the four months to 30 November 2001, group sales are up over 15% (including acquisitions) on the corresponding period in the previous year. After excluding the effect of the remaining manufacturing activities disposed of in February of this year, the increase in the group's sales is over 17%. Operations The UK market (which accounts for over 20% of group sales) continues to hold up well, particularly in the Repairs, Maintenance and Improvement ('RMI') sector. UK sales are up over 15% on the prior year for the first four months. However, sales in the continental European businesses (which account for approximately 10% of group sales) are marginally down on the prior year against the background of slowing economies, particularly in France. In North America (which accounts for approximately 68% of group sales) the regional trading pattern remains variable. There has been no sign of any significant deterioration in overall activity levels since 11 September. Sales in the North American plumbing and heating operations for the first four months are approximately £254 million (26%) up on the previous year principally due to the effect of acquisitions in the prior year. Cumulative like for like sales per day trends for the first 4 months are broadly flat compared to the prior period. Sales in the US building materials business are approximately 9% higher than the prior year. Average lumber prices (which directly affect approximately 10% of total group sales) for the first four months were approximately 5% up on the equivalent period last year although lumber prices as at 30 November are back in line with where they were a year ago. Recent statistics relating to housing starts, housing transactions, and inventory of unsold houses support the continued resilience of the US new residential housing market (which directly affects approximately one third of group sales). Whilst the industrial and commercial market has softened, the pipeline of projects is expected to enable demand to continue at current levels for the foreseeable future. Acquisitions Acquisition activity has slowed given the current economic uncertainties and a reluctance of vendors to reduce, accordingly, prices of businesses available for sale. Four acquisitions have been completed so far in the current financial year for a combined consideration, including debt, of approximately £14 million, including estimated goodwill of approximately £5.5 million. In a full year, these acquisitions are expected to contribute additional sales of approximately £53 million. Financials Net borrowings, excluding construction loan borrowings, as at 30 November 2001, are approximately £690 million giving gearing of around 45%. The group's interest charge for 2001/2 will benefit from interest rate reductions during this calendar year. Outlook Business conditions in the UK are expected to remain stable in the short term whereas continental Europe seems likely to remain soft. No significant pick up in activity levels in North America is expected until after the first quarter of next year. Providing there are no significant changes in our current business environment, we expect to see continued progress over the remainder of this financial year for the group as a whole. -ends- This AGM Trading statement contains certain forward-looking statements as defined under US legislation (Section 21E of the Securities Exchange Act of 1934). By their nature, such statements involve uncertainty; as a consequence, actual results and developments may differ from those expressed in or implied by such statements. ENQUIRIES: Wolseley plc Brunswick Group Ltd tel: 01905 777200 tel: 020 7404 5959 Charles Banks - Group Chief Executive Steve Webster - Group Finance Director Sophie Fitton Jacqueline Sinclair-Brown - Director of Corporate Communications Andrew Fenwick (mob: 07889 433872) There will be an analyst conference call at 0830hrs (GMT): European Dial in: + 44 20 8240 8244 / 8243 US Dial in: 00 1 800 482 2239 Password: Wolseley NB: By dialing this number, you will be requesting participation in any discussions of the matters referred to in the analyst's presentation and of any other matters raised at the presentation (including matters raised in questions or referred to in the answers to questions). There will be playback available after 1300hrs (GMT): European Dial in: + 44 20 8288 4459 Code: 619330 US Dial in: 00 1 800 625 5288 Code: 1391912 A headline video with Charles Banks can be viewed on www.cantos.com from 0700hrs. (GMT). www.wolseley.com

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