DCC says milder weather to hit full-year profit

(Adds CEO and analyst comment, details, shares)

By Li-mei Hoang

LONDON, Nov 4 (Reuters) - Business support services group DCC (LSE: DCC.L - news) said full-year profit would be lower than expected after mild weather in September and October hit demand in its energy division.

The Dublin-based company said on Tuesday operating profits and adjusted earnings per share were expected to rise 5-10 percent, compared with its previous forecast of 10-12 percent.

Chief Executive Tommy Breen told Reuters he expected the impact on full-year operating profit to be around 11-12 million pounds, compared with analysts' current average forecast of 234 million pounds ($374 million).

"The underlying performance was pretty strong, weather however was a negative," said Breen, after the company posted a 1.9 percent rise in first-half revenues to 5.5 billion pounds.

DCC, whose activities range from oil distribution to waste management, said operating profit rose by 6.4 percent to 73.2 million in the first half.

The company's energy division, which accounts for 53 percent of operating profit, posted a 4.7 percent fall in operating profit to 31.9 million pounds.

All of its other divisions showed profit growth. Healthcare, which accounts for 14 percent of operating profit, posted a 26.7 percent rise, while technology showed a 7.7 percent increase.

Shares (Berlin: DI6.BE - news) in DCC were 1 percent lower at 348 pence by 0901 GMT.

Jefferies analysts, who maintained their "buy" rating on the stock, downgraded their profit forecasts after the news.

"We reduce full year pretax profits by 6 percent to 193 million but trading at discount to UK distributor peers, we remain at buy," they added.

(1 US dollar = 0.6252 British pound) (Reporting by Li-mei Hoang; Editing by Kate Holton and Mark Potter)