Jotun (Norway), one of the world’s leading manufacturers of paints and powder coatings delivered its second best result ever in 2016, seeing strong results in challenging markets such as Southeast Asia. Led by solid growth in the Decorative Paints and Powder Coatings segments, the company had operating revenue of NOK 15.8 billion and an operating profit of NOK 1.8 billion.
According to Morten Fon, Jotun President and CEO, Jotun’s rapid growth in the Decorative Paints segment has been the result of customer-focused innovation and successful marketing of premium interior and exterior paints. “Driven primarily by Jotun’s rapid development in the Middle East and South East Asia, Jotun’s growth in this segment has been outstanding,” he says. “And after some years of modest gains, the Group is encouraged by robust growth within the Powder Coatings segment in 2016.”
While Jotun’s overall results were positive, Fon acknowledges that the company’s 2016 results were impacted by lower demand in the shipping and offshore markets, which led to reduced sales in the Marine and Protective Coatings segments.
However, he believed the offshore market is set for a modest recovery some time in 2017.
Jotun also invested heavily in Southeast Asia for future growth. Capital spending increased compared to last year, with Jotun investing NOK 1,133 million in 2016 (2015: NOK 922 million), representing seven per cent of sales. The largest investments are related to factories and facilities in Oman, Norway, Philippines, Myanmar and Malaysia. “For more than a decade, Jotun has enjoyed a period of uninterrupted growth. These and other investments will help the company improve our growth rate in 2017, and beyond.”
Jotun has 63 companies and 37 production facilities on all continents. Jotun’s products are available in more than 90 countries. The Group is organized into four different segments and seven geographical regions, and is headquartered in Sandefjord.