--adds detail, updates share price, adds broker comment--
Plumbing parts supplier Wolseley (LON:WOS) said first-half profits plunged due to a hefty impairment charge, but the firm still raised its dividend after strong growth in the US.
The company, which operates the Plumb Center and Ferguson chains in the US and UK, said profit before tax in the six months to 31 January fell to £103mln, down from £312mln.
A £245mln write-down drained results and related to its Nordic business, DT Group, which experienced tough trading conditions.
Aside from one-off items, underlying trading profit rose to £390mln for the period, compared to £351mln a year earlier, while revenue of £6.4bn was 10.3% ahead at constant exchange rates.
Like-for-like revenue in the US, where Wolseley makes three quarters of its money, rose 11.7% to £3.92bn, helped by bolt-on acquisitions and good growth across residential, commercial and industrial construction markets.
The UK saw a 1.9% like-for-like increase after a spike in housebuilding volumes in the period, but the firm’s European business remained subdued in the face of weak economic conditions.
Ian Meakins, chief executive, said the business expects underlying group trading profit for its financial year to be in line with expectations.
The company said it would pay an interim dividend of 30.25p per share, up from 27.5p in 2013.
"With around 70% of its profits generated in the US, the company provides a good way of playing the ongoing recovery in housing and construction markets," said broker Killik, which has a Buy rating on the firm.
"Meanwhile, self-help in Europe provides a cushion for investors while they wait for the economy to recover," it added.
Shares fell 3% to 4,089p.