DSV 3Q profit rises 19.5% as Schenker integration lifts earnings
DSV’s third-quarter operating profit improved as the Schenker integration savings boosted earnings, offsetting weakness in its trucking division.
DSV reported a 19.5% increase in third-quarter operating profit before special items, as cost synergies from its Schenker acquisition and stronger results in air and sea, and contract logistics outweighed weakness in trucking.
The world’s biggest forwarder (DSV.CO), based in Denmark, posted pre-tax earnings before special items of 6.606 billion Danish kroner ($990.9 million), including $45 million in gains from property disposals. Revenue rose 12.1% year over year to $12.11 billion, while gross profit increased 3.8% to $3.04 billion.
Air and sea business generated $641.7 million in EBIT before special items, up 18.9%, with integration-related cost savings lifting its conversion ratio, or the share of gross profit converted into operating profit, to 45.8% from 38.6%. Contract logistics EBIT climbed 50.3% to $251 million, supported by synergies, improved productivity and capacity utilization.
Trucking remained the weak spot. Its EBIT before special items fell 35.1% to $78.9 million, including $29.3 million in property gains. DSV attributed the decline to lower volumes and productivity after service disruptions linked to the Schenker integration in Europe. Operations normalized toward the end of the quarter, the company said, with attention now shifting to productivity and commercial performance.
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