Travis Perkins sees 2015 earnings at lower end of market expectations

22nd Oct 2015 07:40

(ShareCast News) - Travis Perkins said its full-year earnings are likely to be at the lower end of market expectations due to weakness in the repair, maintenance and improvement market.The building materials group reported total sales growth of 4.4% for the third quarter and like-for-like growth of 2.6%.The company said that although it had planned for a modest reduction in RMI markets through the summer given the slowdown in secondary housing transactions towards the end of 2014 and early 2015, demand was even weaker than anticipated.Although it has continued to outperform the weak market, Travis Perkins said it now expects to deliver earnings before interest, tax and amortisation growth at the lower end of arket expectations.Chief executive John Carter said: "Importantly, our strategy remains firmly on track and we have continued to significantly outperform our key markets.We have made a number of investments over the last 18 months to improve our general merchant proposition, begin the transformation of Wickes, re-segment our plumbing and heating businesses, modernise our IT and supply chain infrastructure and expand the geographic footprint of Benchmarx, Toolstation and CCF."