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Logistics firm DSV eyes recovery in global trade volumes
Global Banking & Finance Review®
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COPENHAGEN (Reuters) – Denmark’s DSV, the world’s third-largest freight forwarder, on Thursday reported a first-quarter adjusted operating profit above expectations and predicted global trade volumes would recover in the coming quarters.
COPENHAGEN (Reuters) – Denmark’s DSV, the world’s third-largest freight forwarder, on Thursday reported a first-quarter adjusted operating profit above expectations and predicted global trade volumes would recover in the coming quarters.
The logistics group has benefited from high freight rates in the wake of the pandemic but a decline in global consumer demand due to cost inflation and high inventories has since prompted rates to drop.
“As anticipated, the demand for transport services and freight rates declined during the first quarter of 2023,” CEO Jens Bjorn Andersen said in a statement.
“We expect that global trade volumes will improve gradually in the upcoming quarters,” he said.
First-quarter profit before interest, tax and special items was 4.7 billion crowns ($696.98 million) against a mean forecast of 4.2 billion in a DSV poll of analysts.
The company maintained full-year operating profit outlook given earlier this year.
(This story has been refiled to remove extraneous word ‘said’ in paragraph 1)
($1 = 6.7434 Danish crowns)
(Reporting by Nikolaj Skydsgaard, editing by Anna Ringstrom)
Freight forwarding is the process of arranging the transportation of goods on behalf of shippers, including the management of logistics, documentation, and customs clearance.
Operating profit is the income generated from a company's core business operations, excluding deductions of interest and taxes, providing insight into operational efficiency.
Cost inflation refers to the increase in the prices of goods and services, which can reduce consumer demand and impact overall economic conditions.
Consumer demand is the desire and willingness of consumers to purchase goods and services at given prices, influencing market dynamics and economic growth.
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