Jotun sales all-time high in 2012

SANDEFJORD, Norway--(BUSINESS WIRE)--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.

“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.”

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.