2014-growth in Jotun

The Jotun Group increased its sales by six percent during the first eight months this year, compared to the same period last year. Jotun has consolidated operating revenues of NOK 8 660 million and expects sales to develop positively.

The growth of six per cent is mainly driven by increased sales volumes for Protective Coatings in North East Asia, good momentum for Decorative in the Middle East, and increased Marine dry docking activity. Sales of decorative paints in Scandinavia have also recovered after a soft start to the year.

- Jotun has passed eight months characterized by strong sales. The operating profit is also still strong, but decreased by seven per cent year- on-year to NOK 978 million. This is predominately due to increased costs related to market development activities especially in the Middle East, says Morten Fon, CEO

Jotun’s total investments were NOK 549 million for the year’s first eight and are in line with previous years and Jotun’s strategic ambitions. Construction of new factories and buildings in Russia, Brazil, China and Oman represents the major part of the investments.

- In line with our organic growth strategy, we will continue to invest in production capacity in both existing and new markets. We are well positioned in the key growth economies and expect sales to continue to develop positively. The Marine new-building market is expected to gradually improve and Raw materials have a stable price outlook for the coming months. These are all factors that will contribute positively, says Fon.

Highlights:

Revenue growth year-on-year
Increase in costs primarily tied to market development activities in growth markets
On-going capacity investments in Russia, China, Brazil and Oman
Source: Jotun