Reuters: Hot Stocks: UPDATE 1-Lower freight volumes hit Denmark's DSV

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UPDATE 1-Lower freight volumes hit Denmark's DSV Feb 20th 2013, 08:37 Wed Feb 20, 2013 3:37am EST * Sees 2013 EBITA 2.55-2.75 bln DKK vs forecast 2.75 bln * 2012 EBITA 2.4 bln DKK vs forecast 2.6 bln * Shares down 3 percent (Adds CEO comments on freight volumes, Nordea comment) COPENHAGEN, Feb 20 (Reuters) - Danish freight forwarder DSV said a weaker global economy was hitting freight volumes more than previously expected, and gave a profit outlook below most analysts' expectations. The company forecast full-year earnings before interest, tax and amortisation (EBITA) of 2.55 billion to 2.75 billion Danish crowns ($457-492 million), compared with analysts' average forecast of 2.75 billion in a Reuters poll. DSV's operating profit last year was also slightly below expectations at 2.4 billion crowns, compared with a consensus forecast of 2.6 billion crowns. The company said on Wednesday it had expected a year ago that freight volumes would be showing stable growth by now. "But expectations went unfulfilled, and towards the end of 2012 we had to realise that overall freight volumes had declined compared to 2011," Chief Executive Jens Bjorn Andersen said in a statement. "We do not anticipate any notable improvement in the market in 2013," he said. At 0830 GMT, DSV shares were down 3 percent at 138.6 crowns. Nordea analysts said in a note to clients that DSV's Air & Sea division, which specialises in air and sea freight, was particularly disappointing. The company has been trying to maintain growth in the face of lower freight volumes through takeovers. It acquired Czech peer Cechofracht in September and African group Swift Freight Group of Companies in October to strengthen its presence in the Middle East and Asia. Andersen said the company was hoping to acquire more companies this year. Finance chief Jens Lund said that, in the absence of a major acquisition in the first quarter, the company would launch a new share buyback programme. ($1 = 5.5847 Danish crowns) (Reporting by Teis Jensen and Ritsuko Ando; Editing by Mark Potter) Link this Share this Digg this Email Reprints

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