DCC: Mild winter to hurt profits

DCC’s share price remained relatively buoyant yesterday despite the Dublin-based support services group lowering its full-year operating profit and earnings guidance.

The group, which last year switched its share listing to London and its reporting currency to sterling, said via a trading update, that while overall third-quarter group operating profit was ahead on a year-on-year basis, it now expects full-year group operating profit for the year to the end of March, to be up by 7% to10%.

In November, at the time of its half-year results, DCC guided for operating profit growth, assuming “normal” winter weather conditions, of 15%. The group also anticipates full-year adjusted earnings per share growth to be in the 7%-10% range, instead of the previously guided 13% growth bracket.