Danish transport and logistics group DSV expects to grow by up to seven per cent in 2010, it said in its first quarter results.
However, the group saw gross margins slip slightly from 24.5 per cent in the first quarter of 2009 to 22.7 per cent this year.
It said the decline in gross margin in the Air and Sea Division was mainly down to the reduction in transport market capacity which had led to a reduction in freight rates over a long period.
“Increases in freight rates by shipping companies and irlines have been passed on to the customer with some delay,” DSV said.
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“The group also considers it possible to raise prices of the Road Division over the next quarters.”
The group pointed out that it handles more, although smaller, shipments at a lower price.
“Prices charged were below those of the same period last yar, which applies in particular to the road division, which continues to face fierce competition.”
The quarter saw the completion of the integration of ABX Logistics in all countries except France where it is expected to be completed in the second quarter. Revenue is expected to grow by between three and seven per cent this year it said.
Group sales in the first quarter were up 2.2 per cent to £1.1billion (DKK 9.66bn) and although gross profit was slightly down, EBITDA rose 15 per cent to £64.9m (DKK566m).
