Continued growth for Jotun

2008-06-09 - The Jotun Group experienced continued growth in the first four months of the year. Both sales and profits are at a historic high. The company is deriving great advantage from being positioned in areas and market segments that are experiencing high growth. Jotun is now expanding excessively in parts of the world where economic growth is relatively strong.

The group's operating income in the first four-month period was NOK 3.2 billion. This was NOK 287 million more than the first four-month period last year. The group's operating profit amounted to NOK 363 million compared to NOK 294 million for same period last year.

Great activity
There has been good development in the group's main markets. Continued high levels of ship-building activity makes a positive contribution. Large projects within the energy and construction industry, especially in the Middle East and South East Asia are other important elements of growth. Jotun has a particularly strong market position in Scandinavia, the Middle East and South East Asia. "2007 was a peak year for us, and we are happy and humble to see that the development has continued in 2008. At the same time, we are aware that the decline in growth of the global economy will also affect Jotun. Jotun has a significant investment programme in countries where the economic growth is expected to be relatively strong over a period of time," says Morten Fon, President and CEO.

International expansion
Jotun will strengthen its position in several countries. The establishment of new factories in both Korea and Libya is under way and upgrading is done in Saudi Arabia and Turkey. Jotun's new factory in India opened in March. It is considered important to maintain a high investment rate in order to grow further.

Good future prospects
"It is expected that the rest of the year will be good, and that the turnover growth will continue. At the same time it is important to make the necessary adjustments in order to meet potential setbacks in those markets where there has been strong growth in previous years," says Fon.

Jotun