HAMPSHIRE-based DIY giant B&Q are expected to announce a multi-million pound profit slump this week.

For the first quarter of 2006 profits at B&Q are expected to be £17m, down from £71m - the profit made during the same period last year.

The slump is being blamed on the degree to which the home improvement chain, whose headquarters are at Chandler's Ford, has cut its prices in a bid to lure customers into its stores.

Like for like sales at its 335-store empire are also expected to be down by around eight per cent.

The 70 per cent profit slump is expected to prompt its parent company Kingfisher to report a halving of group pre-tax profits on Wednesday.

The performance will concern staff at the company, who have already seen redundancies.

Last year the DIY giant shed 220 jobs at its split-site headquarters and use the freed up space for research and development.

The industry has been hit by a down turn in the housing market but trade is not expected to pick up as homeowners are expected to ditch DIY for the duration of the World Cup.