Industrial holding company DCC said revenue and operating profit grew strongly in its third quarter, and improved its outlook for the full year.
In an interim management statement this morning, the company said operating profit for the three-month period ended December 31st 2009 was in line with the previous year, while reported revenue was "modestly" ahead, when the impact of the weaker sterling-euro exchange rate was taken into account.
The company said volumes in its largest division DCC Energy were ahead of the same quarter a year earlier, with the mild start to the three-month period offset by cold weather at the end. The division recorded strong operating profit growth on a constant currency basis.
Meanwhile, trading in IT and entertainment products unit Sercom Distribution was stronger than expected, the company said, primarily driven by its British businesses. However, Sercom Solutions proved a drag on overall profit in DCC Sercom, as operating profit in the supply chain management unit.
DCC said both DCC Healthcare and DCC Environmental showed strong recoveries in operating profit.
The group has spent €112.6 million on acquisitions since September 30th, 2009, including €94 million committed by DCC Energy to the acquisitions of Bayfords Oil Limited, Brogan Holdings Limited and Shell Direct Austria GmbH. DCC also invested €6 million in capital expenditure in the quarter compared to €11.5 million in the same quarter a year earlier.
The company said a good performance for Sercom Distribution in January, combined with strong trading driven by favourable weather conditions for DCC Energy contributed to an improved full-year outlook.
In November, DCC said both operating profit and adjusted earnings per share for the year to March 31st 2010 would be broadly in line with last year, on a constant currency basis. This morning, the company said both operating profit and adjusted earnings per share for the year would be between 5 per cent to 10 per cent ahead of the previous year.
The group said weakness in sterling compared to last year could result in both operating profit and adjusted earnings per share being modestly ahead of the prior year on a reported basis.
