Freight group DSV eyes more cost cuts as Q3 beats forecast

By Louise Rasmussen

COPENHAGEN (Reuters) -Danish freight group DSV posted stronger than expected third-quarter earnings on Thursday, saying it could continue to cut costs amid rising tariff barriers and turmoil in global commerce, sending its shares up 7.6% in early trade.

The world's largest logistics group said the integration of German rival DB Schenker, bought last year in a $16-billion transaction, was progressing faster than expected, boosting profits.

"Despite tough market conditions and lower volumes in some sectors, our commercial approach is driving increased activity among our largest customers," CEO Jens Lund said in a statement.

DSV posted a third-quarter operating profit before special items of 5.43 billion Danish crowns ($848.05 million), slightly beating the 5.33 billion expected by 17 analysts in a company-provided poll.

"We will continue to monitor activity levels across the organisation and will adjust capacity and our cost base as necessary," the company said.

DSV's shares rose to an eight-week high, trading up 5.1% by 1002 GMT, but are down 9% year-to-date, pressured by falling freight rates and a raft of tariffs imposed by U.S. President Donald Trump since his return to the White House in January.

"DSV is clearly affected by negative external factors, but where DSV itself is in control, it delivers the goods," Danish stock brokers Sydbank told clients in a note.

DSV said it now expects about 30% of the Schenker integration to be completed by the end of 2025, twice its previous estimate.

The company now expects an operating profit before special items for 2025 of between 19.5 billion and 20.5 billion Danish crowns ($3.05 billion and $3.20 billion), the lower and of its previous range of 19.5 billion to 21.5 billion crowns.

The new forecast was slightly stronger than analysts had anticipated, Sydbank said.

($1=6.4029 Danish crowns)

(Reporting by Louise Breusch Rasmussen; Editing by Terje Solsvik, Tomasz Janowski and Clarence Fernandez)