DSV raises FY2015 guidance on positive Q3 results

The Danish global transport and logistics provider reported adjusted earnings and net revenues grew 15.1 percent and 2 percent, respectively, in the third quarter of 2015 compared to the same period a year ago.    Danish global transport and logistics provider DSV A/S is raising its full-year 2015 guidance for gross profits, operating profits and free cash flow after reporting positive results for the third quarter and first nine months of 2015.
   Adjusted earnings at DSV grew 15.1 percent to 603 million Danish krone (U.S. $88.68 million) in the third quarter compared to the third quarter of 2014, according to the company’s most recent financial statements. For the first nine months of 2015, profits are up 14.8 percent to DKK 1.62 billion compared to the same period a year ago.
   DSV reported third quarter net revenues of DKK 12.54 billion and year-to-date revenues of DKK 38.26 billion, up 2 percent and 5.8 percent, respectively, from the previous year.
   Diluted adjusted earnings per share grew 19.1 percent during the quarter, from DKK 2.98 per share in Q3 2014 to DKK 3.55 per share in Q3 2015. For the first nine months of 2015, diluted EPS grew 20.5 percent to DKK 9.48 per share, compared with DKK 7.87 per share in the corresponding 2014 period.
   As a result, DSV said it is increasing its full-year expectations for gross profits – from a range of DKK 10.9 billion to 11.2 billion to between DKK 11 billion and 11.2 billion – operating profits before special items – from a range of DKK 2.85 billion to 3 billion to between DKK 2.95 billion and 3.05 billion – and free cash flow before any acquisition or divestment of enterprises – from DKK 2.1 billion to DKK 2.2 billion.
   All other expectations for full-year financial performance remain unchanged, according to DSV.
   “We are extremely pleased with the progress for the third quarter of 2015; DSV has gained market share in all business areas, with both earnings and cash flow keeping up,” CEO Jens Bjørn Andersen said of the results. “The Air & Sea Division continues the positive development and delivers 24% growth in operating profit, and we can raise our overall performance outlook for 2015.
   “Very recently, we announced the acquisition of UTi Worldwide Inc., and the transaction is expected to be approved by the UTi shareholders and the relevant authorities during the first quarter of 2016. It is the largest business acquisition ever in the history of DSV, and we look forward to offering customers an even stronger network.”
   DSV agreed to purchase struggling third-party logistics provider UTi Worldwide for $1.35 billion earlier this month, continuing a remarkable run of mergers and acquisitions within the freight industry in 2015.
   Several major M&A deals have been announced or completed this year, including Kintetsu World Express, Inc.’s purchase of APL Logistics, XPO Logistics’s purchase of French 3PL Norbert Dentressangle and Con-Way Freight, FedEx’s proposed buy of TNT Express, the sale of Australian-based Toll Holdings to Japan Post, the acquisition of OHL by France’s Geodis, and American Fast Freight’s acquisition of Caribbean Shipping Services.