The integration of Panalpina into DSV proved to be the all-important event of Q3, according to the group CEO.

Releasing third quarter results, group CEO Jens Bjorn Andersen says the integration on 19 August has started well, and cost synergies are underway.

About 5% of the 2.3 billion kroner of cost synergies are expected in 2019, with another 60% in 2020 and the other 35% in 2021.

Andersen says: “The closing of the Panalpina transaction on 19 August was the all-important event in Q3. We have had a good start to the integration and the first operational integrations have already started. Meanwhile, we are pleased to report strong results for Q3, despite challenging market conditions, especially in the air freight market.”

Third quarter revenue was 24.5 billion kroner and 64.5 billion kroner in the first nine months of 2019.

Third quarter profits after tax was 1.1 billion kroner and 3.6 billion kroner in the first nine months of 2019.

Panalpina’s activities have been included in DSV’s divisional structure, and has had the largest impact on DSV’s Air & Sea division.

Revenue for the division was 13.9 billion kroner in the third quarter and 33 billion kroner year-to-date, with EBIT before special items coming to 1.2 billion kroner in Q3, and 3.3 billion in nine months.