DSV earnings skyrocket in Q2 2017

The Danish global transport and logistics provider posted profits of 744 million Danish krone on net revenues of DKK 18.9 billion for the quarter, year-over-year increases of 122.8 percent and 7.5 percent, respectively.    Danish global transport and logistics provider DSV A/S recorded profits of 742 million Danish krone (U.S. $118.2 million) for the second quarter of 2017, skyrocketing 122.8 percent from the corresponding 2016 period, according to the company’s latest financial statements.
   Gross profits totaled DKK 4.2 billion for the quarter, ticking up just 0.1 percent year-over-year. Meanwhile, net revenues stood at DKK 18.9 billion for the quarter, up 7.5 percent from the second quarter of 2016.
   As of June 30, DSV had 44,851 full-time employees, up from 43,593 full-time employees 12 months prior.
   DSV is still working to fully integrate the business and processes of UTi Worldwide Inc., which it acquired on Jan. 22, 2016 for $1.35 billion.
   “Most of the planned integration has been completed, and the remaining part mainly relates to consolidation of IT infrastructure, back-office systems and Solutions sites,” DSV said. “The entire integration process is expected to be completed in 2017, and the financial synergies are expected to fully materialize within three years after the acquisition.”
   Broken down by divisions, DSV Air & Sea posted net revenues of DKK 8.9 billion, up from 8.4 billion for the second quarter of 2016, partly due to a higher number of shipments and increased average freight rates. The division’s airfreight volumes inched up 3 percent from the second quarter of 2016, while sea freight volumes rose 4 percent.
   Meanwhile, DSV Road recorded net revenues of DKK 7.7 billion, up from 7.4 billion for the second quarter of 2016 thanks to a 5 percent year-over-year boost in shipment growth.
   In addition, DSV Solutions posted net revenues of DKK 2.9 billion, up from 2.4 billion for the second quarter of last year, thanks to organic growth.
   Looking ahead, DSV wants to expand its e-commerce services where it sees great potential due to rapid growth in internet sales, DSV CEO Bjorn Andersen said in an interview, according to a report from Reuters. Expansion would include hosting web pages, supplying storerooms and handling returns for companies that want to sell their goods online.