Trading Statement

Wolseley PLC
22 January 2007


                                  NEWS RELEASE
                                22 January 2007

                                  Wolseley plc
     Pre-Close Period Trading Statement for five months to 31 December 2006


Wolseley plc, the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials, issues its regular trading statement for the five months to 31
December 2006, prior to entering its close period. The interim results for the
six months ending 31 January 2007 are due to be announced on 19 March 2007.


Overview

As indicated in the Group's AGM statement on 29 November 2006, the Group has
been affected by the continuing slowdown in the housing market and lower lumber
prices in the USA. For the five months ended 31 December 2006, the effect of
these factors has been partially offset by good organic revenue growth in the US
plumbing and heating business (Ferguson), an improved performance in continental
Europe and the contribution from acquisitions.

After currency translation and including the effect of acquisitions, Group
revenue for the five months to 31 December 2006 was up by around 15%, including
around 3% organic growth. Trading profit for the same period was slightly lower.
In constant currency, revenue and trading profit would have been around 5%
higher.

The Group's trading margin for the five month period is lower than the
equivalent period in the prior year primarily due to the lower margins in North
America and Wolseley UK, commodity price gains last year which were not repeated
and additional investments in the business to position the Group for further
growth.

Group profit before tax and before amortisation of acquired intangibles for the
five months to 31 December 2006 was around 14% lower after reflecting certain
one-off costs and a higher interest charge relating to the recent acquisition
spend and increased interest rates.

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


North America

In North America, revenue in the five months to 31 December 2006 in sterling,
including acquisitions, increased by around 2% compared to the corresponding
period in the prior year. Trading profit was down by around 15%, after charging
one off costs relating to headcount reductions and branch closures.

In the USA, new housing starts have fallen more sharply than originally
expected, but the repairs and remodelling market ('RMI') and the commercial and
industrial sectors continue to hold up. Aggregate local currency revenue from
the Group's US businesses was around 10% higher and US trading profit was down
by around 8%. US Dollar weakness has led to an 8% adverse currency translation
impact when US trading profits are reported in sterling.

The US plumbing operations (Ferguson) produced good growth, albeit at a slower
rate, with revenue in local currency for the five months to 31 December 2006 up
by more than 15%. Organic growth was nearly 10%. Trading profit was up by around
10% on the equivalent period in the prior year. The slightly lower trading
margin reflects the lower level of commodity price inflation, the initial effect
of acquisitions and the effects of the weakening new residential markets which
has necessitated headcount reductions of around 500 people in the softer
markets.

At Stock Building Supply ('Stock'), local currency revenue and trading profit
have also been impacted by the continued slowdown in the new residential market
resulting in increased price competition and also by the significantly lower
lumber and structural panel prices. Housing starts in the USA have fallen from
an average annual rate of 2.1 million for the five months to 31 December 2005 to
1.6 million in the comparable period in 2006. There continues to be significant
regional variations. Lumber and structural panel prices, which when combined
account for around 45% of Stock's revenues, have fallen by 22% and 35%,
respectively. Including the impact of acquisitions, local currency revenue for
the first five months of the current financial year was slightly down. Organic
sales volumes were down by around 9% compared to the 22% decline in average
housing starts. Trading profit was down by around 45%, after charging one off
costs of around $11 million relating to 22 branch closures and headcount
reductions of around 3,500. The cost base will continue to be kept under review
in response to changing market conditions.

In Canada, business from the exploration industries in Western Canada has slowed
as a result of warmer weather, lower gas prices and higher inventory levels.
Against this background, Wolseley Canada achieved modest revenue and trading
profit growth compared to the equivalent period in the prior year.


Europe

In Europe, revenue in sterling, including acquisitions, increased by around 40%
in the five months to 31 December 2006, whilst trading profit was up by around
25%. Excluding DT Group, European revenues and trading profit were up by more
than 15% and around 5%, respectively.

Wolseley UK, including Ireland, achieved revenue growth of around 20%, including
double digit organic growth, reflecting generally improving trading conditions
across most brands. Trading profit was only slightly up. The trading margin was
lower as a result of more aggressive pricing and additional investments in
people and facilities, including the new national distribution centre in
Leamington Spa.

In France, government tax incentives continue to underpin growth in the new
residential market, but repairs, maintenance and improvement ('RMI'), the
principal driver of both Brossette and PBM, continues to show only modest
growth. PBM achieved revenue growth in excess of 15%, approximately half of
which was organic and also improved its trading margin, after adjusting for
one-off items in the corresponding period in the prior year. Against the
background of ongoing restructuring, Brossette produced a much improved
performance with organic revenue growth in excess of 5% and trading profit up by
nearly 10% on a comparable basis. This restructuring will continue into 2007/8,
principally in relation to its distribution network.

Trading in the Nordic region by DT Group in its first three months of Wolseley
ownership was encouraging and continued to exceed expectations at the time of
acquisition.

Central Europe showed strong revenue growth, despite most markets remaining
broadly flat. Overall, in sterling, revenue in Central Europe was up around 20%
with the majority being organic growth and the trading margin also improved. The
businesses in Switzerland and the Netherlands continued to show particularly
good growth.


Financial

Group gearing, as at 31 December 2006, of around 95.6% at current exchange rates
compares to 75.2% at 31 July 2006. The higher gearing reflects acquisition spend
and a higher level of capital expenditure, partly offset by the share placing of
£655 million on 25 September 2006 and strong operating cash flow. In the first
five months to 31 December 2006, a total of 29 bolt on acquisitions have been
completed for an aggregate consideration of approximately £328 million. These 29
acquisitions are expected to add approximately £560 million to Group revenue in
a full year. In addition, on 25 September 2006, the Group completed the
acquisition of DT Group for an estimated consideration of £1,353 million which
brings aggregate acquisition spend for the year to £1,681 million.


Outlook

In the USA, the housing market is expected to continue to remain soft for the
next several months, but with significant regional variations. As the year
progresses, the relative performance of Stock should improve as the housing
starts and lumber/panel price comparators become more favourable and the
benefits of the cost reduction programme are realised. The RMI and commercial
and industrial markets are expected to continue to hold up. Ferguson should
increase its market share and achieve good levels of organic revenue growth,
albeit at a more modest rate than the first five months. Where there are signs
of slowing residential markets, action will continue to be taken to reduce the
cost base.

In the UK, the gradual improvement in the RMI and housing markets is expected to
be maintained, although it is too early to assess whether recent interest rate
increases may have an adverse impact on consumer and housing related
expenditure. Growth in the French RMI market is likely to remain modest,
although sales trends are expected to continue to improve. The outlook for the
markets in which DT Group operates remain positive. The Central European
operations are expected to continue to progress well.

The Board remains confident of the Group's ability to outperform the markets in
which its principal businesses operate. The Group has initiated a substantial
review of its cost base, the benefits of which will increasingly materialise in
the second half and will reinforce the Group's plans for future margin growth.
Although the uncertainties relating to the future direction of the US housing
market are likely to remain throughout the second half, the Board currently
expects the Group to make progress for the financial year as a whole.


Chip Hornsby, Group Chief Executive of Wolseley, said:

'The Group continues to outperform in most of its principal markets. The current
actions being taken to adjust the operational cost base, whilst continuing to
invest in the business, will position the Group for sustained growth and margin
improvement.'


Exchange Rates

The average profit and loss account translation rate for the first five months
was $1.91 to the £1 compared to $1.76 for the comparable period last year, a
fall of 8.1%, and €1.48 to the £1 compared to €1.46, a fall of 1.3%.

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


There will be an analyst/investor meeting today at 9.30 a.m. taking place at
UBS, 1 Finsbury Avenue, London, EC2.

A dial-in facility will be available for this meeting:
        UK Toll Free dial-in             0800 032 3808
        International dial-in            [phone]
        ID Wolseley

Slides to accompany the call will be available from 09.15 a.m. on
www.wolseley.com.

A replay facility will be available until 31st January 2007 by dialling:

        UK Toll Free                     0800 559 3271
        International                    [phone]
        US Toll Free                     [phone]
        US Toll                          [phone]

        Replay Passcode                  4791040#


ENQUIRIES:

Guy Stainer                              0118 929 8744
Head of Investor Relations               07739 778187

John English                             001 513 771 9000
Vice President, Investor Relations,      001 513 328 4900 
North America 

Brunswick                                020 7404 5959
Andrew Fenwick
Nina Coad


Certain statements included in this announcement may be forward-looking and may
involve risks, assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied by the forward looking
statements. Forward-looking statements include, without limitation, projections
relating to results of operations and financial conditions and the Company's
plans and objectives for future operations including, without limitation,
discussions of the Company's business and financial plans, expected future
revenues and expenditures, investments and disposals, risks associated with
changes in economic conditions, the strength of the plumbing and heating and
building materials market in North America and Europe, fluctuations in product
prices and changes in exchange and interest rates. All forward-looking
statements in this respect are based upon information known to the Company on
the date of this announcement. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. It is not reasonably possible to
itemise all of the many factors and events that could cause the Company's
forward-looking statements to be incorrect or that could otherwise have a
material adverse effect on the future operations or results of the Company.


Notes to Editors

Wolseley plc is the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials in North America, the UK and Continental Europe. Group revenue for the
year ended 31 July 2006 was approximately £14.2 billion and operating profit,
before amortisation of acquired intangibles, was £882 million. Wolseley has
around 79,000 employees operating in 27 countries namely: UK, USA, France,
Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech Republic,
Hungary, Belgium, Luxembourg, Denmark, Sweden, Finland, Norway, Slovak Republic,
Poland, Romania, Croatia, San Marino, Panama, Puerto Rico, Trinidad & Tobago,
Mexico and Barbados. Wolseley is listed on the London and New York Stock
Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 index of listed
companies.

                                    - ENDS -




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