DSV posts flat operating profit in Q1 2016

The Danish global transport and logistics provider reported an operating profit of 643 million Danish krone (U.S. $98.59 million) for the quarter compared with first quarter 2015 as it continues to integrate the newly acquired business of UTi Worldwide.    Danish global transport and logistics provider DSV posted an operating profit of 643 million Danish krone (U.S. $98.59 million) in the first quarter of 2016, up slightly from DKK 641 million in the same 2015 period, according to the company’s most recent financial statements.
   Diluted earnings per share grew to DKK 2.83 per share from 2.65 per share the previous year. 
   First quarter net revenues, however, jumped 21.6 percent year-over-year to DKK 15.32 billion for the quarter as the company continued to integrate the newly acquired business of UTi Worldwide Inc. DSV finalized its $1.35 billion purchase of UTi in January.
   “The acquisition of UTi has been a major theme in the first quarter of 2016. We took over the company at the end of January, and the integration process is ongoing,” CEO Jens Bjørn Andersen said of the results. “We have had a good start and the process is proceeding according to plan. It is of the utmost importance that we take good care of our customers during this phase – so far we have been successful doing that and it is something that we monitor closely.
   “As anticipated, UTi contributed a loss in the first months of the year, but the existing DSV operations continued the positive development of 2015,” he added. “All in all, we are very pleased to report a Q1 operating profit in line with last year.”
   The company reportedly let go of 41 employees in Portland, Ore. as a result of the merger and told the Wall Street Journal there could be more cuts to come.
   Looking ahead to the rest of 2016, DSV maintained its full-year guidance, with operating profit projected to range between DKK 3.1 billion and DKK 3.5 billion, net financial expenses to total around DKK 450 million and the group’s effective tax rate to total approximately 25 percent.