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(Sharecast News) - Ferguson lifted its expectations for full-year adjusted operating profit on Tuesday as it posted a jump in third-quarter earnings and sales.
In the three months to 30 April, adjusted earnings before interest, tax, depreciation and amortisation rose to $795m from $602m in the same period a year ago, with net sales up 23% at $7.28bn. Operating profit grew to $712m from $559m.
Net sales in the US business grew 23.9% and Ferguson said residential end markets, which make up just over half of its US revenue, remained robust during the quarter.
The distributor of plumbing supplies completed four bolt-on acquisitions during the period, and bought an additional three after the quarter end. It also signed a definitive purchase agreement to acquire an own brand lighting and fan business, subject to regulatory approval. Annualised revenue for these acquisitions is around $450m.
Chief executive officer Kevin Murphy said: "Disciplined cost control ensured earnings growth continued to outpace revenue growth as we ran up against strong prior year comparables. We continue to execute our strategy of investing for organic growth, consolidating our fragmented markets through acquisitions and returning capital to shareholders.
"Near term market demand remains supportive and we have increased our full year expectations for adjusted operating profit to $2.85 - $2.95bn. While we are mindful of broader macroeconomic headwinds, our balanced business mix, agile business model and strong balance sheet position us well for the future."
