RESTRUCTURE OF ITALIAN LOGISTICS ACTIVITIES
DFDS’ Italian logistics activities are to be restructured following unsatisfactory results.
A large part of the activities are door-door rail solutions between Italy and Sweden/Denmark/UK. These activities will be offered by other operators or cease latest 1 April 2018.
The warehousing and distribution activities based in Fagnano, north of Milan, will likewise cease as per 1 April 2018
The door-door rail solutions provided between Italy and Benelux/Ireland/Norway will continue and be managed from offices in Oslo and Rotterdam. Likewise, DFDS Lilla Edet (formerly Italcargo) will continue to provide road services between Sweden and Italy.
The restructure is expected to reduce the revenue of the Italian logistics activities in 2018 by around DKK 225m compared to 2017. 34 employees in Italy, Sweden, UK and Denmark are affected and consultations will commence with them today.
The restructure is expected to entail a small earnings improvement in 2018 excluding one-off costs of around DKK 15m which are recognised under Special Items in the income statement.
DFDS Group outlook 2018
The revenue growth outlook for 2018 is unchanged at around 2% adjusted for the restructuring of the Italian logistics activities. The EBITDA outlook is likewise unchanged.
The outlook for Special Items is changed to DKK -45m from previously DKK -20m. The increase is due to the Italian restructuring and redundancy costs related to the recently conducted restructuring of corpo rate functions.