Heywood Williams Group
Heywood Williams sees full-year results below market expectations, expects tough trading to continue into 2009
Heywood Williams Group PLC expects full-year results to be below market expectations, saying it is facing very tough trading conditions due to the unprecedented impact of the credit crunch on the residential new build and home improvement markets in North America, the UK and Europe.
In an update covering the period July 1- November 18 2008, the specialist distributor of branded building products said trading conditions are likely to remain challenging for the rest of this year and throughout 2009.
Having reduced headcount significantly in North America in 2007, headcount across the group will have reduced by around a further 20 percent by the end of 2008.
In the four months from July to October 2008, sales were down 17 percent from the same period a year earlier at £75 million. Like-for-like sales in the period, excluding the Avenco acquisition, were down 18 percent.
Cumulatively, sales for the ten months to October 2008 were down 12 percent at £192 million compared to 2007. Like-for-like sales for the same period, excluding the Avenco acquisition, were down 14 pct.
In the UK and Europe, residential new build activity is typically down around 50 percent and home improvement activity is down 15-20 percent year-on-year. The latest information from themanufactured housing market in North America is that units produced in September were down 12 percent, which is lower than the year to date trend of a reduction of 10 percent on the previous year.
The recreational vehicle market is in major decline, with September shipments to retailers down 43 percent compared to 2007 and there is clear evidence from its customers that sales levels will slow further in the fourth quarter, Heywood Wiliams said.
Customer feedback also indicates that there are likely to be cutbacks in manufacturing operations in November and December given the lack of consumer demand for recreational vehicles.
Register here to be notified of future Heywood Williams Group articles.