Jotun sales - all-time high in 2012

Jotun continued its strong performance in 2012 with record high sales and solid growth in earnings. With two new factories successfully opened in 2012, Jotun’s expansion programme continues with new plants in Brazil, Russia and the USA. The company reported operating revenues of NOK 11.350 billion in 2012, up from NOK 10.659 billion the previous year. Meanwhile operating profit was NOK 1.126 million in 2012, compared with NOK 956 million in 2011.
Key operational highlights
Total sales higher in volume and value terms in 2012 compared to 2011
EBITA growth of 15 per cent
Record growth in Decorative Paints worldwide and continued high growth in Protective and Powder Coatings segment
Lower sales in the Marine Coatings segment due to weak Newbuilding market
Falling raw material prices contributing to improved gross margin together with pricing and product mix management
Commenting on the results Morten Fon, Jotun’s President and CEO, said:
“Jotun has completed yet another positive year with record sales and strong growth in earnings. A successful management of product mix and prices together with falling raw material prices have improved the gross margins. I am also happy with the successful openings of new factories in China and Norway.”
Long-term perspective and investments
The Jotun Group made a total investment of NOK 796 million in 2012, and major projects during the year included:
Completion of the new factory in Sandefjord and new the powder coatings factory in Zhangjiagang, China
On-going construction of new factories in Qingdao, China and US
New land and warehouse in Vietnam
New regional service centre in Dubai
Solid financial position
Jotun’s operations generated a good cash flow in 2012 mainly due to the strong result and partly due to reduction in working capital from last year. The company’s cash and cash equivalents stood at NOK 802 million at year-end, and the company had undrawn credit facilities totalling NOK 1.9 billion.
Outlook
“Jotun will continue its ambitious expansion programme with new plants in Brazil, Russia, USA and other markets, and continued organic growth. The Group has a solid business model and a sound financial foundation. Jotun is well positioned for future growth.” said Morten Fon, Jotun’s President & CEO.
Source: Jotun