Newly merged housebuilder reports large writedown in the US but says integration will result in 拢100m cost savings
Taylor Wimpey鈥檚 first set of joint results have been hit by a write down of 拢86m in its American operation.
As a result pre-tax profit at the newly merged housebuilder fell from 拢160.8m to 拢18.3m for the six months ended 30 June 2007. Total revenue was 拢1.44bn.
The group said integration of the two businesses was progressing well. It said that pre-tax synergy savings had increased to 拢100m for the year. It also announced a 拢750m share buyback commencing today.
Taylor Wimpey reported a strong performance in the UK housing market and said interim operating profit had risen 38% to 拢159m.
However, it said recent interest rate rises would result in more subdued market conditions in the second half of 2007.
Taylor Wimpey said North American CEO John Landrum would be replaced by Sheryl Palmer. It said US staff would be cut by 25% by the end of the year.
Pete Redfern, Taylor Wimpey group chief executive, Taylor Wimpey said: 鈥淕iven very difficult trading conditions, the respective performances in North America are substantially below the record results achieved in the first half of 2006.
鈥淲e have made excellent progress in the UK in the first half of 2007, with both Taylor Woodrow and George Wimpey demonstrating significant margin improvement.鈥�
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