Irish distie DCC trims profit forecast
Blames weak pound
DCC Plc today scaled back its operating profit growth expectations for the year ended 31 March 2008, saying it had been hampered by weaker sterling.
The Irish business services group said in an interim trading statement that its sterling profits had suffered against the euro towards the end of the third quarter.
It added that the currency has continued to weaken in the current quarter (Q4) pushing expected operating profit growth for the group down by about €3m for the fiscal year 2007/2008.
CEO Jim Flavin said: "The weakness of sterling is not helpful but DCC is well positioned, both commercially and financially, to maintain its record of growth since listing in 1994."
DCC, which distributes a wide range of products including electronic consumer goods, said that given the "adverse impact of the translation into euro of estimated sterling profits in the year to 31 March 2009 would be approximately €12m ($17.78m) in that year."
The company, which said it is looking to ramp up its energy, healthcare and environmental services divisions by swallowing up more firms, has bolted on a number of acquisitions over the past few months. It also coughed up €50m to cover legal costs from an ongoing dispute with banana firm Fyffes Plc.
It admitted in November that an "ongoing price deflation" was expected to put a dent in its printer and PC business.
Shares in the distie, which will announce its prelim results on 19 May, are currently trading down 2.5 per cent at €18.40 on the Irish market. ®