Jotun sales all-time high in 2012

SANDEFJORD, Norway--()--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.

Key financial highlights (NOK million)

   

2012

   

2011

   

Change

Operating income 11 350 10 659 6.5 %
Operating profit 1 126 956 17.8 %
Profit before tax 1 055 893 18.1 %

Jotun is one of the world's leading manufacturers of decorative paints, marine, protective and powder coatings. The group has 74 companies and 39 production facilities on all continents. Jotun products are available in 80 countries through own subsidiaries, joint ventures, agents, branch offices and distributors. Jotun's total sale in 2012 was NOK 15,850 million, and has more than 9,000 employees. The Jotun Group is organised into four segments and seven geographical regions, and has its head office in Sandefjord, Norway.

Contacts

Jotun
Morten Fon
President and CEO
mobile no.: (+47) 909 19 822
or
Sverre Knudsen
Group Communications Director
mobile no.: (+47) 906 32 035

Release Summary

Jotun continued its strong performance in 2012 with record high sales and solid growth in earnings.

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Contacts

Jotun
Morten Fon
President and CEO
mobile no.: (+47) 909 19 822
or
Sverre Knudsen
Group Communications Director
mobile no.: (+47) 906 32 035