Trading Statement

Wolseley PLC
17 July 2006



                                  NEWS RELEASE
                                  17 July 2006

                                  Wolseley plc
        Pre-Close Period Trading Statement for 11 months to 30 June 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 11 months to 30 June
2006, prior to entering its close period. The preliminary results for the 12
months ending 31 July 2006 are due to be announced on 25 September 2006.

Overview

Business conditions in the Group's principal markets have been broadly in line
with comments made in the Interim Results statement on 21 March 2006. Results
for the first 11 months to 30 June 2006 show a strong increase in revenue and
profits driven by high rates of organic growth and market outperformance in
North America and the contribution from acquisitions.

After currency translation and including the effect of acquisitions, Group
revenue for the 11 months to 30 June 2006 was up by around 25% on the same
period in 2005, including double digit organic growth. Trading profit was up by
around 20%, although, as expected, the rate of growth has slowed over the second
half of the financial year due to the stronger comparators. The favourable
currency translation effect added approximately £300 million to revenue and £19
million to trading profit, representing around 3% of the reported sterling
figures.

Central costs in relation to Wolseley plc, Wolseley Europe and Wolseley North
America for the second half are at a similar run rate to the six months to 31
January 2006.

The Group's trading margin is lower than the equivalent period in the prior year
primarily due to the lower level of commodity price inflation, the initial
impact of acquisitions and continued investment in human resources, facilities
and technology.

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


North America

The positive economic environment in the USA and Canada has enabled the North
American business to deliver strong revenue and trading profit growth, in
sterling, in excess of 30%.

In the USA, although new housing starts are beginning to show the expected
decline from record levels, housing related activity remains good, with the
repairs and remodelling market benefiting from the positive economic
environment. The commercial and industrial sectors continue to improve.

The US plumbing operations (Ferguson) have performed particularly well with
revenue in local currency for the 11 months to 30 June 2006 up by around 35% and
trading profit up by around 30% on the equivalent period in the prior year. The
majority of the revenue growth was organic. The slightly lower trading margin is
in line with internal targets and reflects the lower level of commodity price
inflation and the initial effect of acquisitions.

In US Building Materials, local currency revenue for Stock Building Supply was
up by more than 25% for the first 11 months and trading profits up more than 40%
compared to the equivalent period in the prior year. The improvement in trading
margin was primarily due to a more favourable sales mix arising from increased
value added products and installed services, in line with the strategy to expand
the range of products and services offered.

The strong revenue growth in the period reflects high single digit organic
volume growth and the benefit of acquisitions, partly offset by a 4% net
reduction due to lower lumber and structural panel prices.

In Canada, the construction and housing markets remain strong although there has
been a slight slowing in housing starts generally and in manufacturing activity
levels in Eastern Canada. In local currency, Wolseley Canada achieved
double-digit organic growth in revenue and trading profit compared to the
equivalent period in the prior year, although the trading margin was slightly
lower due to the on-going investment in people and infrastructure.


Europe

In Europe, revenue in the 11 months to 30 June 2006 in sterling, including
acquisitions, was up by around 10% compared to the same period in the prior
year. Trading profit was up only slightly, held back by the reorganisation in
Brossette.

Wolseley UK, including Ireland, achieved double-digit revenue growth, including
some positive organic growth, in the 11 months to 30 June 2006. Continued
consumer caution has meant that the first eleven months have proved to be more
challenging than the prior year. However, the commercial sector, including
government spending, continues to show a positive trend overall, despite delays
in certain projects. The trading margin was slightly lower. The new national
distribution centre in Leamington Spa is to be opened on schedule in September
2006.

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.

Brossette's results continue to reflect the disruption caused by its
reorganisation of the branch and management structures and distribution network.
For the 11 months to 30 June 2006 revenue was up slightly compared to the
similar period in the prior year, whilst profits were substantially down.

Good progress was made by PBM which achieved revenue growth of more than 5% in
local currency with reported trading profit also higher, after restructuring and
other one off costs and before the benefit of the customs settlement, previously
announced. The underlying trading margin is up on the equivalent period in the
prior year.

In Central Europe there was a mixed picture with each of the Group's businesses
showing positive revenue growth, despite most markets remaining broadly flat.
The businesses in Italy, Switzerland and the Netherlands all showed good
increases in trading profit.


Financial

The Group's financial position remains strong with Group gearing, as at 30 June
2006, of around 75% at current exchange rates (compared to 68.1% at 31 January
2006). The gearing reflects acquisition spend of £900 million in the 11 months
to 30 June 2006 and a higher level of capital expenditure, partly offset by
strong operating cash flow. In a full year these 50 acquisitions are expected to
add approximately £1.4 billion to Group revenue. The interest charge is notably
higher than the corresponding period in the prior year due to interest rate
rises and the higher level of average borrowings as a result of recent
acquisitions.


Outlook

The US housing market is expected to continue to soften, with significant
regional variations, but remain at levels which are good by historical
standards, presenting further opportunities for growth. Against the background
of positive economic conditions in the USA, the RMI and commercial and
industrial markets should continue to improve. In the UK, recent sales trends
support the Group's view that there will continue to be a gradual improvement in
the RMI and housing markets, as the calendar year progresses. Growth in the
French RMI market is likely to remain modest, although there are tentative signs
that sales trends are improving. In Central Europe, most of the Group's
businesses should show some progress in generally flat markets.



Charlie Banks, Group Chief Executive of Wolseley, said:

'We are on track to achieve another strong performance across our businesses
this year. Our principal operating companies continue to successfully outperform
their local markets, take market share and improve their financial performance.
We continue to invest in people, infrastructure and technology and have made
good progress on acquisitions in the year to date. Although Europe remains slow,
the North American economies are strong and this encourages us for the months
ahead.'



Exchange Rates

The average profit and loss account translation rate for the first 11 months was
$1.7820 to the £1 compared to $1.8593 for the comparable period last year, an
improvement of 4.3%, and €1.4572 to the £1 compared to €1.4593, an improvement
of 0.1%, compared to the prior year.

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 revenue 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 dial-in                                    020 7162 0025
    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 July 2006 by dialling:

    UK                                            020 7031 4064
    International                                 [phone]
    US                                            [phone]

    Pass code                                     712828



Enquiries:

Investors/Analysts:
Guy Stainer                                       0118 929 8744
Head of Investor Relations                        07739 778187

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

Press:
Penny Studholme                                   0118 929 8886
Director of Corporate Communications              07860 553834

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 and a leading supplier of building materials to professional
contractors in North America, the UK and Continental Europe. Group revenues for
the year ended 31 July 2005 were approximately £11.3 billion and operating
profit, before amortisation of acquired intangibles, was £708 million. Wolseley
has more than 70,000 employees operating in 14 countries namely: UK, USA, 
France, Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech 
Republic, Hungary, Belgium, Luxembourg and Denmark. 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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