DSV Gains as Profit Warning Bets Proven Wrong: Copenhagen Mover
DSV A/S (DSV) rose the most in a year in Copenhagen trading after the Nordic region’s biggest trucking company stuck to its full-year profit forecast even as competition squeezes prices.
DSV jumped as much as 4.4 percent, the most since July 31 2012. The stock advanced 4.3 percent to 150.90 kroner at 1:15 p.m. in the Danish capital, with trading volume at 110 percent of the three-month daily average.
“There have been people in the market speculating that DSV would cut its outlook, so today’s market reaction should be seen as a sigh of relief,” Jacob Pedersen, an analyst with Sydbank A/S (SYDB), said by phone. “The earnings that DSV reported were, however, nothing to cheer about and I think there were initial expectations that the stock should drop today after this report.”
DSV today said it will meet its full-year gross profit forecast as it reported second-quarter net income of 420 million kroner ($75 million). That missed the average estimate of 447 million kroner in a Bloomberg survey of 10 analysts. The shares, which before today were almost unchanged this year, fell as much as 0.8 percent in early Copenhagen trading before reversing.
“We’re quite happy that we’re able to repeat our full-year forecast,” DSV CEO Jens Bjoern Andersen said in a phone interview. “There has been tough competition in the market.”
DSV, based in Broendby, Denmark, said it still expects a 2013 gross profit of as much as 10.5 billion kroner, after having recorded a 4.96 billion-krone gross profit in the first six months of the year.
“We will need to make more money in the second half of the year than what we did in the first half, but historically, we’ve been able to do so,” the CEO said.
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