DCC said today its trading profit for its first quarter to the end of June was ahead of expectations, though still down compared with the same period last year.

The group, which comprises healthcare, energy, food and IT, issued a trading update ahead of its AGM today.

Profits in its energy business were "broadly in line" with the first quarter of 2008 despite milder weather this year, while IT unit DCC SerCom was also ahead of budget.

DCC said the outlook for the year to 31 March 2010 remains unchanged from May, when it stated that the first half of the financial year is seasonally much less significant (33.6% of operating profit last year) and results for this period compared to the first half of the prior year will be challenged by the impact of the marked economic slowdown.

For the full year to 31 March 2010, DCC said it continues to expect that operating profit, on a constant currency basis, will be modestly behind to broadly in line, with last year.

Goodbody analyst Dan Cavanagh commented: "Overall, at an operating profit level, Q1 has performed in-line with expectations; and (iii) No change to guidance - Management has maintained its guidance range of a 5-10% operating profit decline for the full year.

Our current forecasts are for a 14% decline in operating profits, which is at the low end of consensus (FY10 consensus of -10%), based on our bearish view on the Irish economy (2009 -8.7% / 2010 -4.6%). Given that H1 normally represents c.30% of full year earnings, and subject to discussions with management, we are unlikely to be making any material changes to our current FY10 forecasts (year to March 2010) of operating profit of €155m (H1: €50m / H2: €104m), which shows a yoy decline of 14% (H1: -17% / H2: -13%)."

Trading statement