Building materials firm’s stock rises nearly four percent following the surprise departure of chief executive Chip Hornsby
By Kevin Doyle
In a surprise development, Wolseley plc announced Wednesday that Group Chief Executive Chip Hornsby had stepped down with immediate effect. Ian Meakins will succeed Hornsby in that role, effective July 13. Meakins is the former chief executive of foreign currency exchange business Travelex.
Hornsby, with more than 31 years in the construction materials distribution industry, joined the Wolseley Group through its acquisition of Ferguson in 1982. Since taking over as Wolseley CEO on August 1, 2006 he has led the drive to reduce costs and improve cash flow in response to increasingly challenging trading conditions arising from the global financial crisis. Hornsby leaves Wolseley following the completion of the £1 billion capital raising in April 2009 and the recent disposal of Stock Building Supply which have significantly strengthened the Group’s financial position.
Nevertheless, Wolseley has been hard hit by the global housing crisis. Last month it said it had cut 14,000 jobs worldwide.
Upon news of Hornsby’s departure, Wolseley shares were the biggest risers on the FTSE 100 index, ending the day up 2.84%, or 32 pence, at 1,158p. Three years ago, around the time Mr. Hornsby took charge, shares were trading at 4,816 pence, 75% higher.
Meakins, who will earn an annual salary of £775,000, said he would help to manage the firm "through the current tough conditions, while further clarifying the strategy and execution to ensure we deliver value to our shareholders".
Wolseley is the leading supplier of construction products, materials and services across Europe and North America. It owns Plumb Center and Build Center in the UK.
Source: www.news.bbc.co.uk