DSV reports strong results for Q3 despite challenging market conditions, especially in the air freight market.
Jens Bjørn Andersen, Group CEO: “The closing of the Panalpina transaction on 19 August was the all-important event in Q3. We have had a good start to the integration and the first operational integrations have already started. Meanwhile, we are pleased to report strong results for Q3, despite challenging market conditions, especially in the air freight market.”
Financial outlook for 2019
Due to the Panalpina transaction, DSV withdrew the financial outlook for 2019 earlier this year. With the transaction completed and Panalpina included in the consolidated financial statements as of 19 August 2019, the expectations for full-year EBIT before special items for 2019 are at DKK 6,600 million [984 million USD] including amortisation of customer relationships of approximately DKK 100 million [14.9 million USD], of which DKK 80 million [11.9 million USD] are related to Panalpina. Transaction and integration costs (reported as special items) for 2019 are expected to amount to approximately 30% of total expected restructuring costs of DKK 2,300 million [343 million USD].
Synergies and integration costs
When Panalpina is fully integrated DSV expects to achieve annual cost synergies of around DKK 2,300 million [343 million USD] (previously announced DKK 2,200 million [328 million USD]). Around 5% of the cost synergies are expected to impact the income statement in 2019, around 60% in 2020 and the remaining 35% in 2021. Total transaction and integration costs are expected in the level of DKK 2,300 million. These costs will be charged to the income statement under Special Items. The company expects that approximately 30% of the transaction and integration costs will materialise in 2019, 55% in 2020 and 15% in 2021.
On 11 November, DSV will launch a new share buyback programme of a maximum value of DKK 2,500 million [373 million USD], running until 6 February 2020.
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