DSV, the largest Scandinavian trucking and logistics company, reported a larger-than-expected decline in second-quarter earnings and lowered its full-year forecast to reflect shrinking ocean, air and road traffic.
Pretax profit at the Danish company fell to $15.7 million in the three months to June 30 from $86 million a year ago on revenue down 1.5 percent at $1.7 billion. Net profit plummeted to $1.5 million from $62 million.
DSV Chief Executive Jens Bjorn Andersen said ocean and air cargo freight rates have bottomed out and likely will stabilize at low levels.
"I don't think rates will decrease any further than they have," Andersen said.
"I don't think they will increase dramatically either . . . I think we will see the status quo. I think we will maintain the (rate) level we have seen in the past three months."
The company has cut its full-year net income forecast to $76 million from $94 million and expects revenue of $7.2 billion, compared with $8.3 billion in 2008.
Copenhagen-based DSV said it has cut 3,500 jobs from its 26,000 payroll and expects to trim its work force by between 15 percent and 20 percent, up from a 12 percent target set in March.
DSV's first-half revenue grew to $3.45 billion from $3.3 billion, but contracted 20.5 percent when adjusted for acquisitions and currency movements.
But "DSV has gained in market share in its main markets as the decline in volumes is deemed smaller than that of the general market," the company said.
DSV said the integration of ABX Logistics, acquired last year for around $1 billion, has been completed in most countries excluding France.
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