January cold snap boosts DCC's energy arm
Tuesday, 2 February 2010 17:56Business support services group DCC has improved its full year outlook from its previous guidance.
In an interim management statement, it said that trading in January was 'excellent', driven by the unusually cold weather conditions which boosted its DCC Energy division and a good performance in SerCom Distribution.
DCC says it now expects both operating profit and adjusted earnings per share - before the impact of currency movements - for the year to March 2010 will be between 5-10% ahead of the previous year.
However, it added that the impact of the translation into euro of the significant proportion of DCC's operating profit which is earned in sterling, would result in both operating profit and adjusted earnings per share being modestly ahead of the previous year on a reported basis.
DCC said it has achieved strong revenue and operating profit growth in its third quarter to the end of December 2009. It said that taking into account the impact of the weaker sterling-euro exchange rate, revenue was modestly head of the previous year while operating profit was in line with expectations.
DCC shares were up 1.8% to stand at €20.42 in Dublin this afternoon.
