UPDATE 1-Travis Perkins sales rise as building market slows
(Adds analyst comment, share price, background, details)
LONDON, May 13 (Reuters) - British building materials group Travis Perkins Plc (TPK.L) said on Tuesday it had taken market share during the first four months of the year, but that it expects a slowdown in the broader market to continue.
Shares in Travis Perkins were down 2.34 percent at 1,003 pence at 0845 GMT.
"Our business has made good progress in the first four months of 2008 in markets that have, as anticipated, continued the slowdown which started in the last quarter of 2007", Chairman Tim Stevenson said in a trading update for the annual shareholders meeting.
The firm, which runs over 900 builders depots and around 200 Wickes home improvement stores, said sales grew 6.8 percent in the four months to April compared with a year earlier.
Travis Perkins said it expected its markets to weaken further during the year, and that recent lead indicators, particularly from the housing market, confirmed a continued slowing of activity.
Separately on Tuesday, British builders Galliford Try Plc (GFRD.L) and Redrow Plc (RDW.L) warned investors their performance had been hit by a sharp downturn this spring, adding to worries that the slide in the British housing market is picking up speed.
"It's a very difficult situation but one thing I would say is that Travis continue to outperform their peers and that's got to be something that is quite important", said Numis Securities analyst Howard Seymour.
Total turnover in the merchanting division rose 8.2 percent in the first four months of 2008 on 3.0 percent like-for-like growth, which the company said was ahead of estimated market growth.
The retail division achieved a 3.3 percent rise in sales, and continued to grow its total market share.
Underlying sales for the group were flat during March and April combined reflecting slowing markets, an early Easter and a strong comparison in 2007, the company added. (Reporting by Johannes Hellstrom; Editing by Erica Billingham)
