Jotun’s sales this interim period (1 January – 30 April) totalled NOK 2,872 million, up NOK 420 million compared to the same period in 2006, while operating profit increased from NOK 223 million to NOK 294 million. Group profit before tax came to NOK 301 million, a 37 percent increase over the 2006 figure of NOK 220 million.
“We are satisfied with the growth that we have seen so far in 2007, and we expect profitability in 2007 to exceed the level of 2006”, says President and CEO Morten Fon.
Jotun Dekorativ has segment responsibility for Jotun’s decorative paints, stains and varnish deliveries to the trade and Do-It-Yourself (DIY) markets in Scandinavia.
Total sales improved compared to the same period last year, in particularly due to strong growth in Sweden. In Norway some of the interior products face stiff competition from the trade’s own private labels, but sales remains at a high and stable level.
This division has global responsibility for the marine and protective coatings. This responsibility includes decorative paints in local markets in Europe and selected markets in Asia.
Sales growth was achieved across all companies and segments during the first four months of 2007. Sales in the European market are growing, with Turkey as the largest contributor. High activity within the oil and gas industry continues to generate new projects, and the protective segment alone exceeded last year’s figures by more than 50 percent. High metal prices are still putting pressure on margins in the coatings market, but profit before tax in this division has developed positively.
This 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.
Jotun Paints has continued to grow its sales since last year in all segments and profit is good. Building activity in the Middle East is high and Jotun is a strong player in the project market, which has resulted in significant contracts. In South East Asia, the division had strong sales growth both in Malaysia, Vietnam and Indonesia.
Jotun Powder Coatings
The division has global segment responsibility for the powder coatings. The product 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.
The market situation for Jotun Powder Coatings is generally good. Both sales and profit before tax grew during the first four months of the year compared to the same period in 2006. Jotun Powder Coatings has achieved high sales in markets like India, Malaysia, Indonesia and Vietnam. Margins are tight in some markets because of high raw material prices, but in general, the division’s profit has improved over this interim period.