Trading Statement

Wolseley PLC
13 July 2004


NEWS RELEASE
13 July 2004

                                  Wolseley plc
        Pre-Close Period Trading Statement for 11 months to 30 June 2004


Wolseley plc, the world's largest specialist trade distributor of plumbing,
heating and building materials products issues its regular trading statement for
the eleven months to 30 June 2004, prior to entering its close period. The
preliminary results for the 12 months ending 31 July 2004 are due to be
announced on 27 September 2004.

Overview

The group's businesses in North America and the UK have outperformed in their
markets, generating high rates of organic growth and substantial increases in
profits. The markets in Continental Europe continue to be broadly flat, although
nearly all the group's businesses showed sales and trading profit growth.

The group's results for the eleven months to 30 June 2004 have benefited from
improving economic conditions in the USA, a positive business environment in the
UK and from higher commodity prices (copper, steel, lumber and structural
panels).

After currency translation, group sales for the eleven months to 30 June 2004
were up by more than 20% and trading profit up by more than 30%. The adverse
currency translation effect on sales was approximately £340 million and £17
million on trading profit. The group has achieved an increase in the trading
margin compared to the equivalent period in the prior year.

Further details of market conditions in each of the group's business segments
are set out below.



North American Plumbing and Heating Distribution

The US plumbing operations performed strongly with sales in local currency for
the eleven months to 30 June 2004 up by more than 15%, and trading profit up by
more than 40% on the equivalent period in the prior year. Virtually all of the
sales growth was organic, including the beneficial effects of price inflation.
Approximately one third of the increase in trading profit was due to commodity
price increases in products such as copper, steel and plastics. The benefits of
this price inflation are unlikely to continue next year, with the likelihood
that commodity prices return to more sustainable, long term average prices. The
trading margin increased substantially over the equivalent period last year and
the business remains on track to exceed its 6% margin target in this financial
year, a year ahead of schedule.

Housing related activity has held up well with the more positive economic
environment having benefited the repairs and remodelling market. The commercial
sector has begun to show signs of improvement, underpinned by increased
government spending. The weakest segment continues to be the industrial market
which is not expected to show any significant improvement until the latter part
of 2004.

Ferguson's market outperformance continues to be driven by the commercial
advantage gained from its distribution centre network and from management's
focus on achieving organic growth in selective markets.

In Canada the construction and housing markets remained strong. In local
currency, Wolseley Canada achieved a double-digit increase in both sales and
trading profit over the equivalent eleven month period in the prior year.


US Building Materials Distribution

Residential housing continues to be a strong segment of the US economy, with new
housing starts remaining high and the inventory of unsold houses, at well below
four months, comparing favourably to the long-term average of around 6 months.


In US Building Materials, sales in US$ were up more than 30% for the first
eleven months and trading profits up by more than 50% compared to the equivalent
period in the prior year. Recent management action to reorganise the business
and improve market focus is having a beneficial effect and organic volume growth
was more than 7%. The restructuring of this business is on track to be completed
this financial year and achieve cost savings of at least $5 million in the 2004
financial year, and $10 million in 2005 and thereafter.

Commodity lumber and structural panel prices, which directly affect
approximately 45% of Stock Building Supply's product range, recovered in the
period largely due to supply problems resulting from forest fires in Canada, a
weaker US$ and increased demand for wood products globally. For the eleven
months to 30 June 2004, average lumber prices of $374 per thousand board feet
were 31% up on the prior comparable period average of $286 per thousand board
feet, while structural panel products increased by 97% to $505 per thousand
square feet. Higher lumber and structural panel prices have had the effect of
increasing Stock's local currency sales by $478 million (19%) in the
eleven-month period compared to the equivalent period in the prior year. These
higher lumber and structural panel prices have started to show signs of
weakening and this trend is likely to continue into the next financial year,
with prices returning to more sustainable, long term averages.

Both the trading margin and the return on capital of Stock Building Supply are
showing substantial increases on the prior year.

European Distribution

The UK has been the most positive of the group's European markets in the eleven
months to 30 June 2004, with demand in the repairs, maintenance and improvement
sector remaining strong. Despite the continuing weakness in the industrial and
commercial markets, Wolseley's UK operations recorded double-digit sales and
trading profit growth in the period, with organic growth of more than 6%.

In France there continues to be an improvement in the business environment
although there are signs of increased price competition. Sales and trading
profit in Brossette were up on last year with organic growth of more than 4%
achieved, mainly due to an improvement in sales for public works programmes,
piping and roofing. PBM (formerly Pinault Bois & Materiaux), which was acquired
on 7 July 2003, performed in line with expectations and is on track to achieve
its return targets. Both sales and profits show an improvement on the comparable
period in the prior year.

The markets across the rest of the Continental European businesses continue to
be broadly flat and this environment is expected to continue for the remainder
of the calendar year. Despite this, nearly all of the group's businesses showed
sales and trading profit growth, with double digit increases in profit being
achieved in Luxembourg and Italy. The most difficult business environments
continue to be The Netherlands and Austria, with trading profit at Wasco being
down on the prior year. Tobler, the Swiss business acquired on 1 December 2003,
performed in line with expectations with sales, trading profit and trading
margin all up compared to the similar period last year.

Financial

The group's financial position remains strong with group gearing, as at 30 June
2004, of around 53% at current exchange rates (compared to 53.9% at 31 January
2004). The gearing reflects acquisition spend of £122 million in the eleven
months to 30 June 2004 and increased working capital necessary to support high
levels of organic growth, particularly in the USA. For the same reasons, the
interest charge is also higher than the corresponding period in the prior year.
However, the working capital to sales ratio for the group continues to show a
favourable trend towards the group's target of 15% of sales.

Outlook

The performance of the group remains strong with its principal markets of the
USA and UK continuing to provide good growth opportunities. A number of weaker
markets, for example, France, are also showing some signs of improvement. With
this improved business environment the prospects for the group in the next
financial year are encouraging. However, higher commodity prices, which have
assisted the group's performance in the first eleven months, may not be repeated
in the next financial year.

The group continues to invest in logistics, information technology and human
resources to secure additional growth opportunities from increased supply chain
efficiencies, sourcing and international synergies. The Wolseley board is
confident that the group's strong financial position, combined with its strategy
to deliver value enhancing opportunities from organic and acquisitive growth,
will continue to stand the group in good stead over the long term.

Charlie Banks, Group Chief Executive of Wolseley, said:

'We are on track to achieve another outstanding performance across our
businesses this year. Our principal operating companies continue to be
successful in their local markets, increasing market shares and improving their
financial performance. In addition, the business environment in which we
currently operate is generally more positive than it has been for the last few
years. We are optimistic about our prospects going forward.'



Exchange Rates

The average profit & loss account translation rate for the first eleven months
was $1.7466 to the £1 compared to $1.5940 for the comparable period last year, a
fall of 8.7%, and €1.4593 to the £1 compared to €1.5111, a rise of 3.5%.

Trading profit, a term used throughout this announcement, is defined as
operating profit before goodwill amortisation. Trading margin is the ratio of
trading profit to sales stated as a percentage.

This 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.




FURTHER INFORMATION:

Wolseley plc
Tel: [phone]

Steve Webster - Group Finance Director
Guy Stainer - Head of Investor Relations


Brunswick Group LLP
Tel: [phone]

Andrew Fenwick
Sophie Fitton



There will be analyst/investor meeting today at 9.30 a.m. taking place at UBS,
100 Liverpool Street, London, EC2.

A dial-in facility will be available for this meeting:
UK and international dial-in [phone]
US dial-in [phone]

A replay facility will be available until 27 July 2004 by dialling:
UK freephone 0500 637 880
International [phone]
US dial-in [phone]

Passcode 256602


Notes to Editors

Wolseley plc is the world's largest specialist trade distributor of plumbing and
heating products and a leading supplier of building materials to professional
contractors in North America, the UK and Continental Europe. Group sales for the
year ended 31 July 2003 were approximately £8.2 billion and operating profit,
before goodwill, was £473 million. Wolseley has around 47,000 employees
operating in 13 countries namely: UK, USA, France, Canada, Ireland, Italy, The
Netherlands, Switzerland, Austria, Czech Republic, Hungary, Luxembourg and
Denmark. Wolseley is listed on the London and New York Stock Exchanges (LSE:
WOS.L, NYSE: WOS) and is in the FTSE 100 listed companies.

European Distribution Division

In the year ended 31 July 2003 sales in the European Distribution Division were
approximately £3.0 billion. In the UK, Wolseley UK is the leading plumbing and
heating distributor and a leading heavyside building materials distributor with
more than 1,450 locations and around 10,200 employees.

In Continental Europe, Wolseley France has around 9,500 employees in 703
locations. Brossette is a leading supplier of plumbing and heating equipment,
underground drainage products, pipes, valves and fittings to the professional
contractor and public authority market. PBM, acquired for €565 million in July
2003, is the number two supplier in France of heavyside building materials and
is the leading importer and distributor of timber.

Other European companies include Tobler in Switzerland, Manzardo Spa in Italy,
OAG in Austria, Heatmerchants in Ireland, CFM in Luxembourg, Cesaro in Czech
Republic, Mart in Hungary, Wasco in The Netherlands and Electro-oil in Denmark.

North American Plumbing and Heating Distribution

In the year ended 31 July 2003 sales in this division were approximately £3.6
billion. In the USA, Ferguson Enterprises is the number one wholesale
distributor of plumbing, heating and piping, valves and fitting products to
professional contractors and industry. It also operates a network of bathroom
and kitchen showrooms. The 761 locations are in 49 states in the USA and Puerto
Rico. Ferguson Enterprises has approximately 12,800 employees.

Wolseley Canada is the number two in its market with 230 locations, distributing
plumbing, heating, ventilation and air-conditioning, engineered pipes,
waterworks and fire protection products.

US Building Materials Distribution

Sales in this division in the year ended 31 July 2003 were approximately £1.7
billion. Stock Building Supply, (formerly known as Carolina Holdings), is the
number one provider of building materials and value added products to the house
builder and professional contractor in the USA. It has 222 locations across 26
US states and has approximately 9,100 employees.




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