Higher than expected business performance in both air cargo and sea freight have led to more upbeat results at Danish freight forwarder DSV.
The company reported in its financial figures for the period from 1 January to 30 September, that operating profit before special items is expected to be in the range of DKK 4,700-4,900 million ($734 million) (previously DKK 4,500-4,700 million).
In the first nine months of 2017, net revenue was DKK 55,882 million, up on the DKK 50,130 million and in the third quarter (Q3) it was DKK 18,735 million, up on DKK 17,205 million in Q3 2016.
DSV says the cost synergies from the acquisition and integration of US forwarder have been achieved faster than expected in 2017 and as a consequence, the remaining full-year impact from cost synergies is now expected to be DKK 200 million in 2018 (previously DKK 300 million).
DSV chief executive officer, Jens Bjørn Andersen says: “A strong commercial and operational performance in Q3 has driven earnings growth of more than 30 per cent and a volume performance in line with or above the market.
“We are pleased to see our business continuously improving, and based on this, we upgrade our expectations for 2017 and launch a five-month share buyback programme of DKK 1,250 million.”