UPDATE 2-DSV Q1 tops consensus, to raise $258 million

* Calls 1.48 bln crown new share issue to pay down debt

* Aimed at institutional investors, not underwritten

* Q1 pretax profits boosted by cost cuts

* Stands by full-year forecasts

* Shares unchanged

(Adds analyst comments, background, updates share price)

COPENHAGEN, April 29 (Reuters) - Danish transport group DSV (DSV.CO) reported higher-than-expected first-quarter profit on Wednesday, boosted by cost cuts, and launched a 1.5 billion crown ($258 million) issue of new shares to reduce debt.

The global economic slump has hit demand for logistics services as shoppers and businesses cut back on spending.

DSV said on Wednesday it had reduced staff numbers by around 2,600 in the six months to end March and believed it had gained market share in its main markets during the first quarter, when it managed to shift pricing pressures to its sub-contractors.

It also stood by full-year forecasts for sales, operating profit before special items and free cash-flow.

"The first part of Q1 was not good, but eventually things got better (in the quarter)," Chief Executive Jens Bjorn Andersen told Reuters in a telephone interview.

"We were surprised by very good results in March ... It`s too early to say that the crisis is over, but we do see some signs of optimism now."

DSV, which said in March it would this year look to raise 1.5 billion Danish crowns in a share issue to pay down debt, said on Wednesday it would offer up to 25.3 million shares, including 19 million new shares representing a tenth of its share capital.

DSV aimed to boost its capital structure "in light of the financial market developments, increasing interest margins and higher focus on gearing levels," it said.

Based on the closing DSV share price of April 28 of 58.50 crowns, it said it expected gross proceeds of 1.48 billion crowns from the cash call, which would be offered to institutional shareholders in Denmark and abroad.

The offering, which is not underwritten and was expected to be priced by May 1, had initially been intended as a right issues for existing shareholders.

"DSV will (now) be able to carry out the transaction earlier than anticipated, at reduced cost and less resources," it said.

Shares in DSV were unchanged at 0945 GMT at 58.50 Danish crowns while the wider market in Copenhagen .OMXC20 rose 1 percent.

"The fact they decided to do the book-building now eliminiates some of the uncertainty associated with the share," said Thomas Hundeboll, analyst at Alm. Brand Markets.

First-quarter pretax profit at the firm, which provides road, air and sea transport, was 114 million Danish crowns ($19.92 million) versus a year-ago 734 million and a mean forecast for 23 million in a Reuters poll of 10 analysts.

"DSV has been able to get larger discounts from subcontractors than what market conditions called for. That shows the strength of their operations," Hundeboll said.

Airline industry body IATA said on Tuesday cargo traffic fell 21 percent in March from a year ago, adding the outbreak of the swine flu virus could not have come at a worse time for the industry.

Swiss logistics group Panalpina (PWTN.S) on Wednesday reported a 94 percent drop in first-quarter profit.[nLT863700]

($1=5.722 Danish Crown)

(Reporting by Anna Ringstrom, Peter Levring and Henriette Jacobsen; editing by John Stonestreet and David Cowell)