[150216.EN.BIZ] DSV On Cusp Of UTi Take Over Posts 8.8pc Profit Increase in 2015

DANISH forwarding giant DSV posted an 8.8 per cent year-on-year increase in 2015 gross profit to US$1.7 billion, drawn on revenues of $7.7 billion, up 4.7 per cent.

DSV also received final approval for the acquisition of US logistics company UTi in January.

CEO Jens Bjorn Andersen, who says DSV is the fourth biggest forwarder after DHL Logistics, Kuehne + Nagel and DB Schenker, stated his company gained market share across all business segments last year.

Mr Andersen estimates that pre-tax profit before special items in 2016 will be in the range of $467.5 million to $528 million.

Operating profit before special items of $459 million was up 16.2 per cent during the same time period.

Demand for the Danish company's air freight grew in 2015 at a rate that was "above the market average", Mr Andersen said. ¡§The air freight results were a key contributor to the division's organic EBIT [earnings before interest and taxes] growth of 13 per cent. The road division's EBIT grew by eight per cent."

"We now have a major project ahead of us - the merger of two global logistics providers and lifting the UTi earnings to DSV levels," said Mr Andersen.

"Based on the assumption of a stable development in the transport markets, we expect to deliver growth in operating profit in 2016 (before restructuring costs relating to the UTi integration).

Source : HKSG.