Jotun reported an operating profit of NOK 1.1 billion in 2009 compared with NOK 0.9 billion for the previous year. Operating income increased from NOK 10.4 to NOK 11.2 billion.
In litres and kilos, Jotun sold two per cent more paint than it did in 2008. There were large variations between the markets and geographically. Key markets such as China, South Korea and the Middle East reported strong figures. While Europe performed poorly.
“We are satisfied with the results, which have exceeded our expectations. Jotun has positioned itself in many growth markets, and we have captured market shares in key areas. The results provide a good foundation for our future long-term priorities,” says President & CEO Morten Fon.
Morten Fon points out that Jotun has also maintained a relatively high investment level in a challenging period for the global economy. Over eighty percent of the group’s revenue comes from outside Norway. We are prepared for possible negative exchange rate effects moving forward.
The construction of a new factory in China, Malaysia and the USA is underway. New factories were opened in Saudi-Arabia and South-Korea in 2009.
Weaker in 2010
“We are prepared for weaker results in 2010. Jotun operates to some extent in late-cyclical markets, which means that we notice the effects of an economic decline later. But again, there will be a great deal of variation,” says Morten Fon.
Jotun is one of the world’s leading producers of paint and powder coatings, with 74 companies and 40 production plants, spread over all continents. In 2009, the group had operating income of NOK 11.2 billion, and it currently has 7,400 employees. The group has four divisions, and its head office is in Sandefjord, Norway.