SANDEFJORD, Norway--(BUSINESS WIRE)--The Jotun Group increased sales of paints and coatings by six per cent last year, ending with operating revenues of more than NOK 12 billion in 2013.
Operating profit increased by 12 per cent to NOK 1.26 billion in 2013, compared with NOK 1.13 billion in 2012. The increase was mainly due to growth in Eastern Europe, South East Asia and parts of the Middle East.
Stable raw material prices, improved product mix and increased focus on the sale of high-quality products in higher margins markets contributed to the positive development in operating profit.
In 2013 Jotun achieved good growth in decorative paints, protective coatings and powder coatings, while sales of marine coatings in the Group's joint ventures operation in North East Asia reduced as a result of the cyclical downturn in the shipbuilding industry.
"We are delighted that Jotun has completed yet another strong year of solid sales and good earnings. 2013 has also been a year of large investments in new and existing markets, including new factories in Russia, China and Brazil," says CEO Morten Fon.
Promises well for 2014
"Jotun is well positioned in the most important growth economies. Based on our organic growth strategy, this will contribute to further sales increases. By ensuring increased capacity and developing personnel and systems that can handle this growth effectively, Jotun is well equipped for the future," says Fon.
Highlights of 2013:
- Good profitability, especially considering the downturn in the shipbuilding industry.
- Gross margins strengthened in all segments, mainly by means of good control of the price and product mix.
- Jotun's investments in 2013 amounted to NOK 733 million. The biggest investments relate to building factories and facilities in Russia, China, Brazil and Vietnam.
Key financial figures (NOK million)
|Profit before tax||1,191||1,055||13%|
Jotun is one of the world's leading manufacturers of decorative paints, marine, protective and powder coatings. The group has 70 companies and 36 production facilities on all continents. Jotun's total sales in 2013 (including joint ventures and associated companies) were NOK 16 billion, and the Group has more than 9,400 employees. The Jotun Group is organised into four segments and seven geographical regions, and has its head office in Sandefjord, Norway.