JOTUN

Jotun Group reports seven per cent growth in operating revenues for 1.tertiary 2013.

For the first four months of 2013 the Jotun Group reported operating revenues of NOK 3 901 million, up from NOK 3 653 million in the same period last year, in particular driven by increased sales in the Middle East and in Eastern Europe. The group’s operating profit for the period rose to NOK 517 million, from NOK 432 million in 1.tertiary last year.

Key operational highlights

• Solid performance
• Continued high top-line growth in three out of four segments: Decorative Paints, Protective Coatings and Powder Coatings, while the Marine Coatings segment suffered from a weak newbuilding market for ships.
• Gross margin strengthened in all segments, because of stable raw material markets and good price-management and product-mix.

Manageable costs rose slightly, but remain under control.

Working capital increased during the period, mainly due to a seasonal sales increase in Scandinavia, and an increase in overdue receivables in Asia.

Long-term focus and investments

Jotun’s total investments were NOK 167 million in 1.tertiary. Major investments included:

• Ongoing construction of new production facilities in China, Russia, Indonesia and the USA.

Solid financial position

Jotun’s equity ratio was at 52 per cent at the end of April 2013. The company has sufficient liquidity and little net interest bearing debt.

Commenting on the results Morten Fon, Jotun’s President and CEO, said:

“We have had a satisfactory start to the year in terms of both sales and profitability.

“We do not expect the trend in newbuilding market to pick up in the short-term, and we have shifted focus to maintenance of ships and the protective coatings market.

“Jotun has, based on our organic growth strategy, made several new market entries including Myanmar, Bangladesh and Morocco, and we will continue to invest in new markets.”

Outlook for the remainder of the year

“Jotun expects continued sales growth based on its strategy and positioning in key growth economies. Raw materials represent approximately 60 per cent of the total cost base for the Group, and the expectation is that raw material prices remain at today’s level.”

KEY FIGURES (IFRS, in NOK million) January 1 – April 30
			2013			2012		% change
Operating revenues			3901			3653		+ 7%
Operating profit (EBIT)			517			432		+ 20%
Profit for the period			316			295		+ 7%

Contact:

Jotun
Morten Fon, President and CEO, mobile no.: (+47) 909 19 822
Sverre Knudsen, Group Communications Director, mobile no.: (+47) 906 32 035

Link:

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