Sunday, August 2, 2009

Mixed Message from Shipping and Transport Leader DSV

CEO Andersen admits profit drop but thinks transport rates are stable
Shipping News Feature

In a press conference on Friday Jens Bjorn Andersen, CEO of Danish run giant DSV, revealed a bigger drop in profits for their second quarter than anticipated.

Despite hopes of improvements over the previous period, these proved groundless as the group recorded profits of only £ 9.5 million against industry predictions which averaged £ 7 million more. The profits for the same quarter last year came in at £ 52 million. A spokesperson for DSV said "Due to the ongoing economic and financial crisis with consequential impacts on prices and freight volumes, the DSV Group has reduced the forecasts of its full-year revenue, contribution margin and operating profit before special items."

Mr Andersen stated that he thought recovery would not be noticeable until the latter part of next year. He felt the company was increasing its market share and that rates had bottomed out. He believes that eventually DSV will emerge from the situation as a stronger company but that he foresaw no rise in rates as yet.

In view of the latest figures DSV are reportedly cutting their operating profit (before special items) for full 2009 revenues by £28.5 million.