UTi integration spurs strong profit, revenue growth at DSV

The Danish global transport and logistics provider reported adjusted earnings of 2.5 billion Danish krone (U.S. $358.3 million) on DKK 67.7 billion in revenues in 2016, year-over-year increases of 13.3 percent and 33.2 percent, respectively.    Danish global transport and logistics provider DSV A/S saw revenues and profits surge in 2016 as the company continued to integrate the network and assets of third-party logistics provider UTi Worldwide Inc.
   DSV closed the $1.35 billion purchase of UTi in January 2016, after the Long Beach, Calif.-based firm had struggled to turn a consistent profit and began laying off workers in an effort to stem the bleeding.
   According to the company’s most recent financial statements, DSV reported adjusted earnings of 2.5 billion Danish krone (U.S. $358.3 million) for the full year in 2016, a 13.3 percent increase from 2015.
   Diluted adjusted earnings per share (EPS) stood at DKK 13.40 for the year compared with DKK 12.85 per share the previous year.
   Full-year revenues surged 33.2 percent year-over-year to DKK 67.7 billion.
   DSV’s air and sea division grew its operating profits (before special items) 11.4 percent to DKK 2.1 billion, while operating profits in the company’s road and solutions segments rose 14.3 percent to DKK 1.1 billion and 58.7 percent to DKK 384 million compared with 2015.
   Looking forward to 2017, the company said it expects operating profit to be between DKK 4.2 billion and DKK 4.5 billion and further integration costs of roughly DKK 500 million in relation to the UTi integration.
   “While maintaining momentum in our integration efforts in 2016, we kept focus on running the business, leading to very satisfactory results in all divisions,” DSV CEO Jens Bjørn Andersen said of the results. “We expect to complete the integration of UTi and continue to take market share in 2017 creating earnings growth of 21 percent to 29 percent.”