[311017.EN.BIZ] DSV Operating Profit Rises 34.4pc On Back of UTi Worldwide Acquisition

DANISH forwarding giant DSV declared a third quarter 34.4 per cent year-on-year increase in operation profit, largely credited to last year's acquisition of US 3PL UTi Worldwide.

After the strong growth of Q4 2016, CEO Jens Bjorn Andersen said: "Comparisons will be difficult. To be cautious, it's fair to assume we could see growth rates slightly below double digits in Q4 and onward."

DSV quarterly air freight tonnage rose 11.7 per cent year on year while overall air cargo volumes rose to 165,051 tonnes.

Third quarter growth outpaced year-to-date advances by only rising 10.8 per cent year on year in the first nine months of 2017.

But Mr Andersen said the company's growth is "back on track" after efforts to integrate UTi into its business slowed growth earlier in the year.

DSV also noted that synergies from the UTi acquisition have emerged sooner than expected in 2017, and subsequently revised its outlook for the remainder of 2017, with the expectation of operating profit of between US$737 million and $768 million, up from the $706 million to $737 million previously expected.

DSV sees much improvement in the US and Asia-Pacific, while Europe also grows, though double-digit growth is unlikely to continue into the fourth quarter.

Source : HKSG.