DCC sees profit ‘modestly ahead’
Published 02/02/2010 | 10:26
Distributor DCC rose the most in a month in Dublin trading after raising its annual profit forecast.
DCC climbed as much as 5.3pc. Operating profit for the year through March 2010 is anticipated to be “modestly ahead” of the prior year, the company said today in a Regulatory News Service statement.
That compares with a November forecast that profit on that basis would be between 5pc and 10pc behind last year.
Trading in January was “excellent,” as weather conditions boosted the company’s energy unit and the information technology division had a “good” performance in the third quarter ended December 31, DCC said.
Operating profit at the group’s three other units rose during the quarter, with “strong” recoveries at the healthcare and environmental divisions.
“DCC has issued an upbeat interim management statement,” analyst David Jennings at Davy stockbrokers in Dublin said in a research note.
The company “unsurprisingly had a very strong January given the extended cold spell,” said Jennings, who has an “outperform” recommendation on DCC.
Excluding the impact of currency fluctuations, DCC expects annual operating profit to rise between 5pc and 10 percent, compared with its November forecast for profit on that basis “broadly in line with” the prior year.
The company makes about three-quarters of its operating profit in pounds after purchasing stakes in a number of UK companies.
DCC rose as much as €1.06 to €21.11 and traded at €20.90 as of 8:59am in Dublin.