Danish shipping icon upgrades its expectations for 2016 – The Post

Danish shipping icon upgrades its expectations for 2016

DFDS sales out of a strong third quarter

Fair winds for DFDS in 2016 (photo: DFDS)
November 15th, 2016 4:23 pm| by Ray W

The shipping division of DFDS has upgraded its expectations for fiscal year 2016, anticipating an operating profit of more than 2.5 billion kroner.

The Danish company made the adjustment following a strong third quarter for which it declared a pre-tax profit of 732 million kroner – up 23 percent on the same period in 2015.

It accordingly raised its operating profit project to 2.525-2.625 billion kroner.

“DFDS is one of the Danish companies that has the greatest contact with British markets and the effects of the Brexit election, so today’s results are very interesting,” said DFDS managing director Niels Smedegaard.

Exchange woes
Despite the upgrade, the company has downgraded its overall revenue growth outlook from 6 to 4 percent, attributing the change to exchange rate fluctuations that will have a “full-year impact on revenue of around minus 475 million kroner, mainly as a result of the decline in the British pound”.

READ MORE: DFDS invests in Copenhagen to Oslo route

Earlier this year, DFDS upgraded its outlook in connection with its Q2 financial statement.