Industry News

Jotun turnover increased by more than NOK 1 billion

Published on 2007-02-19. Author : SpecialChem

2006 was yet another strong year for Jotun, with the group continuing to develop with higher sales and improved profits compared with 2005.

"In terms of sales, 2006 was the best year ever for Jotun. We have strengthened our market positions in all segments," says Morten Fon, president and CEO.

Jotun's sales totaled NOK 7,733 million in 2006, up NOK 1,023 million compared with 2005, while operating profit increased from NOK 535 million to NOK 645 million. The group's profit on ordinary activities before tax came to NOK 585 million, compared with NOK 490 million in 2005.

Jotun Dekorativ - record sales

The Jotun Dekorativ division produces paints, stains and varnish for the trade and consumer market in Scandinavia.

In 2006 Jotun Dekorativ set a new sales record, resulting from higher volumes in both the interior and exterior markets. The division's profit was somewhat lower than in the previous year due to price harmonization of Jotun's products in Scandinavia and increased competition from the trade's own brands in the interior market. The division maintained its position in Norway and grew its sales in Sweden. In addition increased activity in the professional market in Denmark led to sales growth.

Jotun Coatings - strong sales growth

The division has global segment responsibility for marine and protective coatings. This responsibility includes decorative paints in local markets in Europe and selected markets in Asia.

Market conditions were good with high levels of activity. Jotun Coatings is in a period of strong growth and increased its sales in 2006. Despite a demanding raw materials market, the profit increased but was still not at a satisfactory level.

2006 was a good year for the marine segment in terms of number of ships coated and total value of contracts signed. This, combined with a closer cooperation and better communication in our global marine network, helped strengthen our position among our international customers.

The segment for protective coatings benefited from increased global activity in the oil and gas industry, and consequently strengthened its market position. The segment has developed steadily throughout 2006, with sales growth in Asia and the Middle East being particularly strong.

Jotun Paints - continues to grow

The division has segment responsibility for decorative paints in all markets outside Scandinavia. This responsibility includes marine and protective coatings for markets in the Middle East and South East Asia.

The division maintained its sales growth from last year and profit was good. There continued to be strong growth in demand for products, particularly in the Middle East, where construction activity is extremely high. In this region, Jotun is now market leader for decorative paints. In South East Asia the division had strong sales growth in Malaysia and Indonesia.

Jotun Powder Coatings - stable development

The division has global segment responsibility for powder coatings. The portfolio caters for the architectural, functional and industrial market segments to both protect metal surfaces from corrosion and add colour and style to their appearance.

Sales in the division grew and margins stabilized at a higher level than last year. This helped the division significantly improve its profit after a period of weak earnings. The general market situation is good with growth, particularly in markets in the Middle East where the division won several large contracts.

Organic growth main strategic direction

Jotun has a well-established position in markets in Scandinavia, the Middle East and Asia and will strengthen its position in these areas through organic growth.

"For many years Jotun has grown organically, and this is a strategy we will continue with. To achieve our goals we will build new factories and invest in existing facilities. We will also strengthen our investment in research and development, and focus on competence development and recruitment," says Fon.

Source: Jotun

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