By Li-mei Hoang
LONDON (Reuters) - British plumbing supplies group Wolseley (L:WOS) posted a 20 percent rise in third-quarter trading profit and said it was on track to meet analysts' full-year expectations, helped by strong revenue growth in its largest market, the United States.
The company, which operates the Plumb Center and Ferguson chains in the United States and Britain, said on Tuesday trading profit at constant exchange rates rose to 195 million pounds in the three months ended April 30.
"It's a very strong profit performance and that's quite hard to find in these markets," said Charles Stanley analyst Tony Shepard. "Although that is probably in line with expectations, it's still good to see it being delivered."
Wolseley shares were up 2.9 percent at 4,135 pence by 0840 GMT (9:40 a.m.), the biggest rise for a European blue-chip stock (FTEU3).
Revenue climbed 7.5 percent on a like-for-like basis in the third quarter and the company kept its forecast for growth of around 6 percent over the next six months.
In the United States, which accounts for almost two-thirds of the group total, like-for-like revenue rose 8.3 percent. It was up 7.6 percent in Britain and up 8.8 percent in Nordic countries.
Wolseley is expected to make a full-year underlying profit of 775 million pounds, according to a Thomson Reuters poll of 18 analysts.
The company completed three acquisitions in the third quarter, with a total annualised revenue of 69 million pounds.
Finance chief John Martin said it was taking a cautious stance on deals and would probably not reach its average annual spending on acquisitions of 200-300 million pounds.
"We have a strong preference to buy good businesses ... and there haven't been that many around," he said.