Adds CEO quote, details, background
COPENHAGEN, July 31 (Reuters) – Denmark’s freight-forwarder DSV Panalpina DSV.CO on Friday reported better-than-expected earnings and said it would reinstate its former full-year guidance, which was suspended in March due to the coronavirus pandemic.
“The uncertainty remains higher than normal, but based on a strong first half of 2020 we are now able to reinstate guidance for the full year,” Chief Executive Jens Bjoern Andersen said in a statement.
Second-quarter operating profit before special items rose 63% to 2.6 billion Danish crowns ($415.52 million), above an average of 2.36 billion forecast by analysts in a poll compiled by DSV.
For the year, DSV expects an operating profit before special items in the range of 8.2 billion to 8.7 billion, while annual special items and costs would come in around 2.3 billion, down from an earlier 2.5 billion, DSV said.
The outlook, DSV said, is based on assumptions of gradual improvement of global freight markets in the latter part of the year with no larger supply chain disruption.
DSV, whose Air & Sea division took a huge boost from the firm’s billion-dollar Panalpina acquisition last year, said integration of Panalpina was “progressing slightly ahead of plan”.
More than 90% of Panalpina’s volumes had been transferred to DSV’s IT platforms, it said.
The Air & Sea division, it’s largest by far, saw core profit grow 96.5% in the second quarter, mainly due to the Panalpina integration and cost cutting, while core profit in its Road division suffered a 22.2%% decline in the same period, but still faring better than analyst estimates.
($1 = 6.2572 Danish crowns)
(Reporting by Nikolaj Skydsgaard Editing by Shri Navaratnam)
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