DSV earnings continue rising in Q3 2017

The Danish global transport and logistics provider posted profits of 826 million Danish krone (U.S. $128.5 million) on net revenues of DKK 4.1 billion for the quarter, year-over-year increases of 49 percent and 2.4 percent, respectively.    Danish global transport and logistics provider DSV A/S posted profits of 826 million Danish krone (U.S. $128.5 million) for the third quarter of 2017, up 49 percent from DKK 552 million in the same 2016 period, according to the company’s latest financial statements.   
   Gross profits totaled DKK 4.1 billion for the quarter, an increase of 2.4 percent, while net revenues rose 8.9 percent year-over-year to DKK 18.7 billion.
   “A strong commercial and operational performance in Q3 has driven earnings growth of more than 30% and a volume performance in line with or above the market,” said DSV CEO Jens Bjørn Andersen. “We are pleased to see our business continuously improving, and based on this, we upgrade our expectations for 2017 and launch a five-month share buyback program of DKK 1,250 million.”
   Broken down by divisions, DSV Air & Sea posted net revenues of DKK 9 billion, up from 8.2 billion for the third quarter of 2016. The division’s airfreight volumes jumped 11.7 percent from the third quarter of 2016, while sea freight volumes inched up 2.8 percent.   
   Meanwhile, DSV Road recorded net revenues of DKK 7.5 billion, up from 7.1 billion for the third quarter of 2016 despite increasing haulier rates and tight capacity.
   In addition, DSV Solutions posted net revenues of DKK 2.7 billion, up from 2.4 billion for the third quarter of last year. However, DSV noted that gross profit was negatively impacted by competitive pricing, increasing operating costs and the reclassification of terminal costs in connection with UTi integration.
   DSV has issued revised exceptions for 2017, driven in part by higher than expected activity levels, mainly in the Air & Sea division. The company said it now expects operating profit before special items in the range of DKK 4.7-4.9 billion (previously DKK 4.5-4.7 billion); net financial expenses, excluding foreign exchange adjustments, of approximately DKK 300 million (unchanged); and adjusted free cash flow of about DKK 4.4 billion (previously DKK 4.25 billion).
   At the same time, DSV said cost synergies from the integration of UTi Worldwide have been achieved faster than expected in 2017. As a result, the remaining full-year impact from cost synergies is now expected to be DKK 200 million in 2018 (previously DKK 300 million).