Industrial holdings group DCC said operating profits may fall as up to 10 per cent this year due to the weakness of sterling against the euro.
In a statement ahead of its agm in Dublin today DCC said profits are expected to be between 5 and 10 per cent lower in the year to March 2010.
Excluding the impact of currency movements, earnings will be "modestly behind to broadly in line" with the year earlier, the company said/
Approximately three-quarters of DCC's operating profits come from the sterling region and translating earnings from a weak pound back into euro means DCC makes less profit.
The company said first-quarter operating profit was "ahead of budget" and that results for the first half of the year "will be challenged by the impact of the marked economic slowdown".
On a constant currency basis operating profit at the group's largest division, DCC energy was ahead of budget and broadly in line with the first quarter of last year.
DCC will publish half-year results on November 10th. At 9am shares in DCC were up over 4 per cent at €15.10, giving the company a market capitalisation of €1.24 billion.
Additional reporting Bloomberg