BRONDBY, DK: DSV has reported revenue of DKK23.76 billion for the first six months of 2014 (H1) – up 5.5 percent over the same period last year. The company says its second quarter (Q2) revenue rose 6.6 percent to DKK12.16 billion.
Profit for H1 fell from DKK738 million in 2013 to DKK 583 million due to the cost of the company's cost-saving "Operational Excellence" 2.0 initiative that includes the setting up its international Shared Service Centre in Poland.
DSV CEO Jens Bjørn Andersen commented: "The earnings growth owes to our global air and sea freight activities, which reported top line growth and increased productivity. The European road freight and contract logistics markets are characterised by fierce price competition, which had an impact on our earnings in these business areas."
The air and sea division reported a 9.0 percent increase in ocean freight volumes and 11 percent rise in airfreight for H1. Road freight saw a five percent increase in consignments and a 5.8 percent rise in net revenue but the gross margin declined slightly from 18.9 percent to 18.1 percent. DSV's logistics solutions business was affected by surplus capacity in several countries. As a result, gross profit fell 4.5 percent and the margin declined from 26.1 percent to 24.6 percent for the period.
The company is forecasting a 3-5 percent growth in its ocean freight business; a 2-4 percent increase in airfreight; 1-3 percent rise in road freight and a 1-3 percent growth in logistics solutions for the remainder of the year. As a result its full-year operating profit is expected to be in the range of DKK 2.55 billion to 2.7 billion.
Andersen added the company still sees good possibilities for growth "both organically and through acquisitions" and said he was "pleased to note" that DSV has exhibited stronger growth rates than the market in general.