Expects 2023 op profit of 16-18 bln DKK (2022: 25.2 bln DKK)
Expects freight volumes to lag GDP growth in H1
(Adds detail on 2023 outlook)
By Jacob Gronholt-Pedersen
COPENHAGEN, Feb 2 (Reuters) - Denmark's DSV, the world's third-largest freight forwarder, said on Thursday it expects its 2023 profit to be impacted by lower volumes in the first half.
DSV benefited from sky-rocketing freight rates in the wake of the pandemic, but falling global consumer demand, soaring inflation and high inventories have since prompted rates to drop.
"Towards the end of the year, our performance was impacted by the general macroeconomic slowdown and a gradual normalisation of the freight markets," CEO Jens Bjorn Andersen said in a statement.
"We expect this trend will continue into 2023, and this is reflected in our financial guidance," he added.
DSV expects earnings before interest and tax (EBIT) before special items this year of 16 billion to 18 billion Danish crowns ($2.4-$2.7 billion).
This compares with 16.9 billion expected by analysts and 25.2 billion achieved last year.
DSV operates around 23,000 trucks, employs some 75,000 people and has over 500 warehouses and logistics facilities globally, handling everything from shipment of individual pallets to entire supply chains for multinational companies.
Transport volumes, which normally grow in line with the economy, lagged global economic growth at the end of last year, as customers brought down inventory and consumer behaviour returned to normal levels, DSV said.
The company expects the negative development in freight volumes to continue in the first part of 2023, followed by a recovery in the second half.
It expects volumes in its air and sea division to decline by 2%-5% this year, while road and logistics solutions are seen flat or declining slightly.
Fourth-quarter EBIT before special items stood at 4.75 billion Danish crowns ($703.23 million), compared with the 4.90 billion forecast by analysts in a poll gathered by the company.
($1 = 6.7598 Danish crowns) (Reporting by Jacob Gronholt-Pedersen, editing by Terje Solsvik)
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