DSV raises outlook as freight rates rise on global supply snarls
2022.07.26 09:46
A genereral view of Denmark’s DSV warehouse in Copenhagen, Denmark, October 3, 2016. REUTERS/Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) -DSV, the world’s third-largest freight forwarder, raised its annual earnings outlook on Tuesday and posted forecast-beating second-quarter numbers as supply chains continue to suffer from congestion globally.
The shipping industry has seen earnings skyrocket as high consumer demand coupled along with supply chain bottlenecks prompted a spike in freight rates.
“The uncertainty in the global economy has intensified and the demand for freight services has softened in recent months,” Chief Executive Officer Jens Bjorn Andersen said in a statement.
“Still, large parts of global supply chains are challenged by congestion,” Andersen added.
DSV now expects earnings before interest and tax (EBIT) before special items for 2022 to be in the range of 23 billion crowns to 25 billion crowns ($3.16 billion to $3.43 billion), up from an earlier estimate of 21 billion to 23 billion crowns.
The company reported earnings before interest and tax (EBIT) before special items of 7.5 billion crowns for the second quarter, beating an average of 6.5 billion crowns forecast by analysts in a company poll.
($1 = 7.2802 Danish crowns)
