DSV airfreight grows above market rate in third quarter

The DSV Air & Sea division reported a 10% increase in airfreight volumes for the first nine months of 2018, with seafreight recording 4% growth.

The Denmark-based logistics operator says the airfreight increase was mainly driven by a strong performance on EMEA and American exports and compared well with an estimated 4% market growth overall.

The Air & Sea division (which accounted for 45% of net revenues and 53% of gross profit) achieved a net revenue growth of 7.2% to reach DKK27.1bn in constant currencies. The Road division achieved 4.5% growth with Solutions up 14.9%.

The group achieved a gross profit of DKK13bn for the first nine months of 2018 compared with DKK12.5bn last year – an increase of 7% in constant currencies.

Group chief executive Jens Bjørn Andersen said: “We delivered strong results in the first nine months of 2018, including healthy top-line growth across all business areas and continued improvement of our margins.

“The implementation of trade tariffs continues to create uncertainty in our industry, but so far, we see a negligible impact on our activities. Based on our performance so far and expectations for the rest of the year, we are adjusting our earnings outlook.”

The consolidated full-year outlook for 2018 previously announced is adjusted as follows: Operating profit before special items is expected to be in the range of DKK 5.4-5.6bn (previously DKK 5.3 -5.6bn).

The company added that “after a two year period where the growth in global air freight volumes has outpaced the underlying economy, we have now seen a normalisation and estimate that both the airfreight and seafreight markets will grow 3-4% in 2018.”

The Q3 report made no mention of DSV’s recent offer to acquire CEVA Logistics. DSV announced on October 23 that it decided not to pursue its revised offer of SFR30 a share “due to the unwillingness of the CEVA Board of Directors to engage directly with DSV”.