DCC expects operating profits ahead of target due to high energy demand

ENERGY DEMAND during the severe winter boosted revenues at DCC, which now expects operating profits for its current financial year to come in ahead of target.

The industrial holding group said in a third-quarter interim statement yesterday that the exceptionally cold weather during the final six weeks of 2010 boosted customer demand in its biggest division, energy, which operates a number of oil distribution businesses. The energy business accounted for 44 per cent of operating profits at the half year stage.

At the same time, revenues at DCC Sercom, its second largest business unit, also grew on the back of Christmas demand for Microsoft’s gaming platform, Kinect, for which it has distribution rights.

The group’s statement said it now expects operating profit for the 12 months ended March 31st, its financial year, to grow by 15 per cent, ahead of the 10 per cent increase it predicted when it published its interim results last November.

The group had operating profits of €193 million in its 2010 financial year and revenues of €6.7 billion. DCC said there was a first-time contribution from Comtrade, the French consumer electronics distribution business that it bought last August for €11.4 million.

Its healthcare and food and drink businesses also performed well. However, the bad weather hit its environmental business, where trade during the quarter was down the same period 12 months earlier.