Danish freight forwarder DSV has reported that in the first quarter (Q1) of this year air freight volumes were up five per cent to 170,103 tonnes.
Growth it said was mainly driven by strong performance on Americas exports. It said the air freight market declined one per cent in the same period.
The company also said it expects to close the $4.6 billion transaction of Panalpina at the end of the third quarter this year.
It will create one of the largest transport and logistics companies in the globe with revenue of approximately Danish Kroner 118 billion ($17.7 billion) and a workforce of more than 60,000 employees in 90 countries.
DSV’s overall revenue for the period 1 January – 31 March 2019 was DKK 19,979 million (US$3 billion), up on the DKK 18,380 million in Q1 last year. Profit after tax was DKK 963 million, up on the DK 769 million in Q1 2018.
For Q1 2019, the Air & Sea division achieved nine per cent growth in gross profit for the quarter. The division reported EBIT before special items of DKK 998 million and underlying growth of 20.5 per cent compared to the same period last year.
Group chief executive officer, Jens Bjørn Andersen said: “We delivered strong results in Q1 2019, with healthy top-line growth across all divisions and a 15% underlying growth in EBIT. As previously announced, we have entered into an agreement to join forces with Panalpina and we expect that this transaction will close end Q3 this year.
“We are very much looking forward to teaming up with Panalpina, and while preparing for the integration, we are focused on delivering good customer service and managing the day to day operations. Our Q1 report is a clear testament to this.”