Plumbing - US homes crash impacts on plumbing sector

25/09/2007

The recent crisis in the US housing market has resulted in a knock-on effect on the plumbing industry, it has been claimed.

Following the publication of interim results from major global plumbing products distributor Wolseley, the Guardian has reported a drop in the share price of the firm, while the ongoing housing crash could affect other industry players.

It noted that City traders have been "unnerved" by the results, despite company claims that difficulties had been mentioned well in advance of the publication of these figures.

"There are no signs yet of any upturn in the US housing market and the repairs, maintenance and improvement market is now beginning to soften," Wolseley reports.

The company forecasts that the industrial and commercial markets will retain their positivity, though predicts slower growth in these segments.

Potentially better news for the plumbing sector came from Mark Baribeau, vice president of Boston-based investment management firm Loomis Sayles, who told the Australian that the worst of the sub-prime mortgage crisis in the US is now over.