DSV’s profit fell and its revenue stalled in the first quarter on declining cargo volumes and increased competition, but the Danish logistics and freight forwarding group said it is still looking for acquisitions to spur growth.
Operating profit dipped 8 percent to 509 million Danish kroner ($89.3 million) from 555 million kroner ($ 97.4 million) in the first quarter of 2012 as revenue edged 1.8 percent higher to 11 billion kroner ($1.9 billion).
The Copenhagen-based company said it gained market share in challenging conditions during the opening months of the year. Ocean shipments grew 2 percent in a stagnant global market, air traffic declined 2 percent in line with the market and trucking volume was unchanged.
“The first part of 2013 has been largely as expected; stagnating or declining freight volumes in the main markets of DSV coupled with intense competition,” CEO Jens Andersen said. “The results for the first three months match our expectations on most parameters, and we maintain the outlook for the full year.”
“The recipe will therefore remain the same: organic growth, cost control and hopefully a few good acquisitions which can be efficiently and effectively integrated in the DSV network.”