7/9/2008

With its stock at a seven-year low and no housing recovery in sight, Wolseley, the world's largest plumbing and construction products distributor, needs to immediately address its balance sheet, analyst Jessica Flounders said. She was quoted in a newspaper as saying: "The company may be able to strengthen the capital structure through asset disposal and further cost cutting, but these will eat into the growth of the businesses. Other options are a dividend cut or capital raising." Another analyst in the U.K. called Wolseley's current financial structure "unsustainable."

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