(Alliance News) - Ferguson PLC on Tuesday reported a rise in third quarter sales and income against a "tough" prior year comparison and as result increased its full-year expectations.
The plumbing and heating products supplier reported net sales of USD7.28 billion in the three months ended April 30, up 23% from USD5.92 billion the previous year.
Net income climbed to USD546 million from USD369 million, representing 48% growth year-on-year.
The US business grew net sales by 24% in the quarter. Residential end markets, which comprise of just over half of its US revenue, remained robust during the quarter, it said. Non-residential end markets experienced strong growth, with non- residential revenue growing by approximately 29% in the third quarter.
In Canada, net sales grew by a more modest but still significant 8.8%. Ferguson added both residential and non-residential end markets saw good growth.
"Our associates continued to drive outstanding service and support for our customers, delivering further market share gains and a strong financial performance. Disciplined cost control ensured earnings growth continued to outpace revenue growth as we ran up against strong prior year comparables," said Chief Executive Kevin Murphy.
On the back of its strong third quarter, Ferguson upgraded its full-year expectations for adjusted operating profit to between USD2.85 to USD2.95 billion. In the year ended July 31, Ferguson posted operating profit of GBP2.05 billion.
Shares in Ferguson were down 0.6% at 8,900.00 pence on Tuesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Ferguson (FERG)