UPDATE 1-DCC sees bounce back from profit drop
* FY operating profit down 18 pct to 185.0 mln euros
* Sees strong return to growth
* Increases dividend by 5 pct to 77.89 cents
DUBLIN, May 15 (Reuters) - Irish business services group DCC said it would bounce back from an 18 percent dip in operating profit, dented by milder weather and higher oil prices during the winter months.
The Dublin-based group, whose energy business makes up more than half of its profits, said it expected a 15 percent rise in operating profit and earnings per share in the current financial year on a constant currency basis.
"Given normal winter weather we feel (DCC) Energy is in a good place and the rest of the group has performed well," DCC's Chief Executive, Tommy Breen told Reuters.
"We would expect a strong recovery in DCC Energy's operating profit," he added.
DCC, which also sells a broad range of products from computer games to coffee, lowered its expectations in February for its annual operating profit from 212 million euros to 175-190 million euros.
It said on Tuesday operating profit dropped 18 percent on a constant currency basis to 185.0 million euros ($237.50 million), in line with expectations.
Operating profit at DCC Energy fell 38 percent, with the average temperature in the UK - DCC Energy's largest market - the mildest on record in the quarter to end-December.
DCC said it had raised its dividend by 5 percent to 77.89 cents and reported a 25 percent rise in revenue to 10.7 billion euros largely due to acquisitions across all its businesses.
Shares in DCC closed at 19.9 euros on Monday, valuing the group at approximately 1.67 billion euros.
- Radar showed missing plane may have turned back: Malaysia military
- Malaysian jetliner may have turned back before vanishing |
- Malaysian plane presumed crashed; questions over false IDs |
- CORRECTED-UPDATE 4-Malaysia Airlines plane crashes in South China Sea with 239 people aboard - report
- Russian forces tighten grip on Crimea despite U.S. warning |