REVENUE and operating profits grew strongly in its third financial quarter, industrial holding company DCC said yesterday as it improved its outlook for the full year.

In an interim management statement, the company said operating profit for the three months to December 31st last was in line with the previous year, while reported revenue was “modestly” ahead when the impact of the weaker sterling-euro exchange rate was taken into account.

The company said volumes in its largest division, DCC Energy, were ahead of the same quarter a year earlier, with the mild start to the three-month period offset by cold weather at the end. The division recorded strong operating profit growth on a constant currency basis.

Trading in the IT and entertainment products unit Sercom Distribution was stronger than expected, the company said, primarily driven by its British businesses.

However, Sercom Solutions proved a drag on profit in the division. Operating profit at the supply chain management unit, which accounts for about 10 to 15 per cent of DCC Sercom, declined.

DCC said both its healthcare and environmental units showed strong recoveries in operating profit.

The group has spent € 112.6 million on acquisitions since September 30th last, including € 94 million by DCC Energy to the acquisitions of Bayfords Oil, Brogan Holdings and Shell Direct Austria. DCC also invested € 6 million in capital expenditure in the quarter compared to € 11.5 million in the same quarter a year earlier.

The positive statement included a revised outlook that was more upbeat than previous predictions.

The company said operating profit and adjusted earnings per share for the year to March 31st, 2010, would be between 5 per cent to 10 per cent ahead of the previous year.

In November, DCC had said both would be broadly in line with last year on a constant currency basis.