DCC issues IT distie profit warning
PrintPrice deflation and difficult trading
Posted in Financial News, 13th September 2005 08:44 GMT
Free whitepaper – Dell PowerEdge servers 2009 - Memory
Shares in Irish business services group DCC fell sharply yesterday following a profits warning from the company.
IT made up 21 per cent of the firm's operating profits last year and news that the division was struggling knocked ten per cent off DCC shares. The company said poor trading got worse in July and August.
Gem Distribution, its UK business which distributes games and retail software, has been hit hard by the decline in retail consumer spending. The games market is expected to pick up with the arrival of Microsoft's Xbox 360 later this year but this is unlikely to have an impact on trading.
DCC's UK and continental distribution businesses Micro Peripherals and Distrilogie have also been hit by price deflation and difficult trading.
DCC warned that group profits, and earnings per share, for the six months are likely to be down by as much as ten per cent. The company's energy, food and business services divisions are all performing well.
Read the whole statement here. ®
Free whitepaper – Total cost of ownership of Dell, HP and IBM blade solutions
10 Steps to a Successful CRM Implementation
10 Strategies for Choosing a Midmarket ERP Solution
Enabling the Agile Data Center
Managing desktop software for fun and profit
Hosted CRM Can Be Your Secret Weapon to Success!
Google Spanner — instamatic redundancy for 10 million servers?
Early adopters bloodied by Ubuntu's Karmic Koala
Fedora 12 polishes Linux for netbooks
Sign up, sign up for The Register IT security newsletter