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Danish logistics giant DSV has slightly exceeded third-quarter profit expectations but lowered its full-year 2025 outlook, citing weaker demand and significant foreign exchange challenges. The company now expects operating profit before special items to range between DKK 19.5 billion and DKK 20.5 billion (USD 3.05-3.20 billion), down from the earlier projection of up to DKK 21.5 billion. Market pressures affecting DSV include falling freight rates and earlier trade tariffs. The firm is taking steps to manage costs, monitor operations, and maintain efficiency amid these ongoing uncertainties.
DSV, headquartered in Denmark, reported a third-quarter operating profit before special items of DKK 5.43 billion (around USD 800 million), slightly surpassing analyst expectations of DKK 5.33 billion (USD 790 million). Despite this, the company has revised its full-year 2025 forecast downward, reflecting softer demand and significant foreign exchange impacts. The updated guidance estimates operating profit before special items between DKK 19.5 billion and DKK 20.5 billion (USD 3.05-3.20 billion), compared with the previous range of DKK 19.5 billion to DKK 21.5 billion. Advertisement
Chief Financial Officer Michael Ebbe noted that while market demand has softened, foreign exchange fluctuations remain a notable headwind. He emphasized that the company will continue to carefully monitor activity across its operations and adjust capacity and cost structures as required. These measures are intended to sustain operational stability and efficiency during a period of uncertainty.
European shipping and logistics firms, including DSV, are facing pressure from declining freight rates and weaker demand, partly due to trade tariffs introduced earlier this year. DSV's proactive approach highlights its focus on maintaining efficiency while adapting to changing market dynamics. The company's continued investments in monitoring operations and flexibility in capacity adjustments aim to mitigate the impact of ongoing market challenges.
Source Reuters
5th Jun, 2025
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