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DCC says earnings will be in line with previous year's set

Diversified sales, marketing and distribution group DCC has said that earnings for its financial year ending next March will be broadly in line with, or marginally behind, the previous year's figure and that it is continuing to explore potential acquisitions.

In an interim management statement released yesterday to coincide with its annual general meeting, DCC said that after a difficult April and May for its energy division, June proved a better month for the company as a whole, with group operating profit for the month "well ahead" of that generated in June 2010.

"However, reflecting trading in April and May, group operating profit for the first quarter was well behind last year and budget," it warned.

The first quarter was budgeted by DCC to account for about 15pc of its group profit for the fiscal year.

"The group's half year to September 30, which was budgeted to represent approximately 30pc of the profit for the year, will be impacted by the result for the first quarter," the group added.

DCC said that the outlook for the current financial year continued to be framed against a difficult economic environment, particularly in the UK, and the company's usual assumption that there would be a return to more normal weather patterns compared with the extremely cold winter last year.

DCC distributes products from home heating oil to games consoles.

Shares in DCC closed down 2.3pc at €19 yesterday.

Irish Independent